SDLTM29500 - Reliefs: Arrangements involving public or educational bodies

General guidance on FA03/SCH4/PARA17

Partial relief from Stamp Duty Land Tax is given by FA03/SCH4/PARA17 for certain arrangements involving public or educational bodies, qualifying bodies. Qualifying bodies are defined in FA03/SCH4/PARA17(2).

The relief is available for arrangements where

  • there is a transfer, or the grant or assignment of a lease, of land, (“the main transfer”), by a qualifying body A to a non-qualifying body B
  • in whole or in part consideration of the main transfer there is a grant by B to A of a lease or under-lease of the whole, or substantially the whole, of that land, (“the leaseback”)
  • B undertakes to carry out works or provide services to A; and
  • some or all of the consideration given by A to B for the carrying out of those works or the provision of those services is consideration in money

whether or not there is also a transfer, or the grant or assignment of a lease, of any other land, (“surplus land”), by A to B.

There is no need for the main transfer and the transfer, lease or assignment of any surplus land to be separate transactions. For example there may be a lease by A to B which acts both as the main transfer in respect of part of the subject matter and as the transfer of surplus land in respect of the rest.

Where such arrangements exist

  • the lease-back
  • the carrying out of works by B for A
  • the provision of services By B for A
  • are not chargeable consideration for the main transfer, or for the transfer of any surplus land. This means that Stamp Duty Land Tax will generally be charged only on any cash premium or rent paid by B
  • the main transfer
  • the transfer of any surplus land
  • any consideration paid by A to B for the works or services
  • are not chargeable consideration for the leaseback. This means that there will generally be no chargeable consideration for the leaseback

The Stamp Duty Land Tax provisions relating to exchanges, which normally charge tax on the market value of the interest acquired, do not apply to the main transfer, the transfer of any surplus land or the leaseback