SCHEDULES
C1C2F1SCHEDULE 4ZAStamp duty land tax: higher rates for additional dwellings and dwellings purchased by companies
Sch. 4ZA modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended 10.6.2021) by 2021 c. 26, s. 87(2))
Sch. 4ZA modified (temp.) (8.2.2023) by Stamp Duty Land Tax (Temporary Relief) Act 2023 (c. 2), s. 1
PART 2Meaning of “higher rates transaction”
Single dwelling transactions
3
1
A chargeable transaction falls within this paragraph if—
a
the purchaser is an individual,
b
the main subject-matter of the transaction consists of a major interest in a single dwelling (“the purchased dwelling”), and
c
Conditions A to D are met.
F61A
But sub-paragraph (1) is subject to paragraph 7A.
2
Condition A is that the chargeable consideration for the transaction is £40,000 or more.
3
Condition B is that on the effective date of the transaction the purchased dwelling—
a
is not subject to a lease upon which the main subject-matter of the transaction is reversionary, or
b
is subject to such a lease but the lease has an unexpired term of no more than 21 years.
4
Condition C is that at the end of the day that is the effective date of the transaction—
a
the purchaser has a major interest in a dwelling other than the purchased dwelling,
b
that interest has a market value of £40,000 or more, and
c
that interest is not reversionary on a lease which has an unexpired term of more than 21 years.
5
Condition D is that the purchased dwelling is not a replacement for the purchaser's only or main residence.
6
For the purposes of sub-paragraph (5) the purchased dwelling is a replacement for the purchaser's only or main residence if—
a
on the effective date of the transaction (“the transaction concerned”) the purchaser intends the purchased dwelling to be the purchaser's only or main residence,
b
in another land transaction (“the previous transaction”) whose effective date was during the period of three years ending with the effective date of the transaction concerned, the purchaser or the purchaser's spouse or civil partner at the time disposed of a major interest in another dwelling (“the sold dwelling”),
F4ba
immediately after the effective date of the previous transaction, neither the purchaser nor the purchaser's spouse or civil partner had a major interest in the sold dwelling,
c
at any time during F5the period of three years referred to in paragraph (b) the sold dwelling was the purchaser's only or main residence, and
d
at no time during the period beginning with the effective date of the previous transaction and ending with the effective date of the transaction concerned has the purchaser or the purchaser's spouse or civil partner acquired a major interest in any other dwelling with the intention of it being the purchaser's only or main residence.
F26A
Sub-paragraph (6)(ba) does not apply in relation to a spouse or civil partner of the purchaser if the two of them were not living together (see paragraph 9(3)) on the effective date of the transaction concerned.
7
For the purposes of sub-paragraph (5) the purchased dwelling F8is also a replacement for the purchaser's only or main residence if—
a
on the effective date of the transaction (“the transaction concerned”) the purchaser intended the purchased dwelling to be the purchaser's only or main residence,
b
in another land transaction whose effective date is during F9a permitted period, the purchaser or the purchaser's spouse or civil partner disposes of a major interest in another dwelling (“the sold dwelling”),
F7ba
immediately after the effective date of that other land transaction, neither the purchaser nor the purchaser's spouse or civil partner has a major interest in the sold dwelling, and
c
at any time during the period of three years ending with the effective date of the transaction concerned the sold dwelling was the purchaser's only or main residence.
F107A
For the purposes of sub-paragraph (7)(b), the permitted periods are—
a
the period of three years beginning with the day after the effective date of the transaction concerned, or
b
if HMRC are satisfied that the purchaser or the purchaser's spouse or civil partner would have disposed of the major interest in the sold dwelling within that three year period but was prevented from doing so by exceptional circumstances that could not reasonably have been foreseen, such longer period as HMRC may allow in response to an application made in accordance with sub-paragraph (7B).
7B
An application for the purposes of sub-paragraph (7A)(b) must—
a
be made within the period of 12 months beginning with the effective date of the transaction disposing of the major interest in the sold dwelling, and
b
be made in such form and manner, and contain such information, as may be specified by HMRC.
7C
Schedule 11A (claims not included in returns) does not apply in relation to an application made in accordance with sub-paragraph (7B).
F38
Sub-paragraph (7)(ba) does not apply in relation to a spouse or civil partner of the purchaser if the two of them are not living together (see paragraph 9(3)) on the effective date of that other land transaction.
4
A chargeable transaction falls within this paragraph if—
a
the purchaser is not an individual,
b
the main subject-matter of the transaction consists of a major interest in a single dwelling, and
c
Conditions A and B in paragraph 3 are met.
Sch. 4ZA inserted (with effect in accordance with s. 128(5)(6) of the amending Act) by Finance Act 2016 (c. 24), s. 128(3) (with s. 128(9)(10))