66 Transfers involving public bodies
(1) A land transaction entered into on, or in consequence of, or in connection with,
a reorganisation effected by or under statute is exempt from charge if the
purchaser and vendor are both public bodies.
(2) The Treasury may by order provide that a land transaction that is not entered
into as mentioned in subsection (1) is exempt from charge if—
(a) the transaction is effected by or under a prescribed provision of statute,
(b) either the purchaser or the vendor is a public body.
In this subsection “prescribed” means prescribed in an order made under this
(3) A “reorganisation” means changes involving—
(a) the establishment, reform or abolition of one or more public bodies,
(b) the creation, alteration or abolition of functions to be discharged or
discharged by one or more public bodies, or
(c) the transfer of functions from one public body to another.
(4) “Statute” means—
(a) an Act of Parliament,
(b) an Act of the Scottish Parliament, or
(c) any Northern Ireland legislation as defined in section 24(5) of the
Interpretation Act 1978 (c. 30).
(5) The following are public bodies for the purposes of this section—
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
The Corporate Officer of the House of Lords
The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
The National Assembly for Wales
Local government: England and Wales
A county council constituted under section 2 of the Local Government Act 1972
A district council constituted under section 2 of that Act
The council of a London borough
The Greater London Authority
The Common Council of the City of London
The Council of the Isles of Scilly
Local government: Scotland
A council constituted under section 2 of the Local Government etc. (Scotland)
Act 1994 (c. 39)
Local government: Northern Ireland
A district council within the meaning of the Local Government Act (Northern
Ireland) 1972 (c. 9 (N.I.))
Health: England and Wales
A Health Authority established under section 8 of the National Health Service
Act 1977 (c. 49) (“the NHS Act”)
A National Health Service Trust established under section 5 of the National
Health Service and Community Care Act 1990 (c. 19)
A Primary Care Trust established under section 16A of the NHS Act
A Special Health Authority established under section 11 of the NHS Act
A Strategic Health Authority established under section 8 of the NHS Act
The Common Services Agency established under section 10(1) of the National
Health Service (Scotland) Act 1978 (c. 29)
A Health Board established under section 2(1)(a) of that Act
A National Health Service Trust established under section 12A(1) of that Act
A Special Health Board established under section 2(1)(b) of that Act
Health: Northern Ireland
A Health and Social Services Board established under Article 16 of the Health
and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265
A Health and Social Services Trust established under Article 10 of the Health
and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I.
A body (other than a company) that is established by or under an enactment
for the purpose of carrying out functions conferred on it by or under any
A person prescribed for the purposes of this section by Treasury order
(6) In this section references to a public body include—
(a) a company in which all the shares are owned by such a body, and
(b) a wholly-owned subsidiary of such a company.
67 Transfer in consequence of reorganisation of parliamentary constituencies
(a) an Order in Council is made under section 3 of the House of Commons
(Redistribution of Seats) Act 1949 (orders specifying new
parliamentary constituencies), and
(b) an existing local constituency association transfers a chargeable interest
(i) a new association that is a successor to the existing association,
(ii) a related body that as soon as practicable transfers the interest
or right to a new association that is a successor to the existing
the transfer, or where paragraph (b)(ii) applies each of the transfers, is exempt
(2) In relation to any such order as is mentioned in subsection (1)(a)—
(a) “the date of the change” means the date on which the order comes into
(b) “former parliamentary constituency” means an area that, for the
purposes of parliamentary elections, was a constituency immediately
before that date but is no longer such a constituency after that date;
(c) “new parliamentary constituency” means an area that, for the purposes
of parliamentary elections, is such a constituency after that date but
was not such a constituency immediately before that date.
(3) In relation to the date of the change—
(a) “existing local constituency association” means a local constituency
association whose area was the same, or substantially the same, as the
area of a former parliamentary constituency or two or more such
(b) “new association” means a local constituency association whose area is
the same, or substantially the same, as that of a new parliamentary
constituency or two or more such constituencies.
(4) In this section—
(a) “local constituency association” means an unincorporated association
(whether described as an association, a branch or otherwise) whose
primary purpose is to further the aims of a political party in an area that
at any time is or was the same or substantially the same as the area of a
parliamentary constituency or two or more parliamentary
(b) “related body”, in relation to such an association, means a body
(whether corporate or unincorporated) that is an organ of the political
(5) For the purposes of this section a new association is a successor to an existing
association if any part of the existing association’s area is comprised in the new
68 Charities relief
(1) Schedule 8 provides for relief from stamp duty land tax for acquisitions by
(2) Any relief under that Schedule must be claimed in a land transaction return or
an amendment of such a return.
69 Acquisition by bodies established for national purposes
A land transaction is exempt from charge if the purchaser is any of the
(a) the Historic Buildings and Monuments Commission for England;
(b) the National Endowment for Science, Technology and the Arts;
(c) the Trustees of the British Museum;
(d) the Trustees of the National Heritage Memorial Fund;
(e) the Trustees of the Natural History Museum.
70 Right to buy transactions, shared ownership leases etc
Schedule 9 makes provision for relief in the case of right to buy transactions,
shared ownership leases and certain related transactions.
71 Certain acquisitions by registered social landlord
(1) A land transaction under which the purchaser is a registered social landlord is
exempt from charge if—
(a) the registered social landlord is controlled by its tenants,
(b) the vendor is a qualifying body, or
(c) the transaction is funded with the assistance of a public subsidy.
(2) The reference in subsection (1)(a) to a registered social landlord “controlled by
its tenants” is to a registered social landlord the majority of whose board
members are tenants occupying properties owned or managed by it.
“Board member”, in relation to a registered social landlord, means—
(a) if it is a company, a director of the company,
(b) if it is a body corporate whose affairs are managed by its members, a
(c) if it is body of trustees, a trustee,
(d) if it is not within paragraphs (a) to (c), a member of the committee of
management or other body to which is entrusted the direction of the
affairs of the registered social landlord.
(3) In subsection (1)(b) “qualifying body” means—
(a) a registered social landlord,
(b) a housing action trust established under Part 3 of the Housing Act 1988
(c) a principal council within the meaning of the Local Government Act
1972 (c. 70),
(d) the Common Council of the City of London,
(e) the Scottish Ministers,
(f) a council constituted under section 2 of the Local Government etc.
(Scotland) Act 1994 (c. 39),
(g) Scottish Homes,
(h) the Department for Social Development in Northern Ireland, or
(i) the Northern Ireland Housing Executive.
(4) In subsection (1)(c) “public subsidy” means any grant or other financial
(a) made or given by way of a distribution pursuant to section 25 of the
National Lottery etc. Act 1993 (c. 39) (application of money by
(b) under section 18 of the Housing Act 1996 (c. 52) (social housing grants),
(c) under section 126 of the Housing Grants, Construction and
Regeneration Act 1996 (c. 53) (financial assistance for regeneration and
(d) under section 2 of the Housing (Scotland) Act 1988 (c. 43) (general
functions of the Scottish Ministers), or
(e) under Article 33 of the Housing (Northern Ireland) Order 1992 (S.I.
1992/1725 (N.I. 15)).
72 Alternative property finance: land sold to financial institution and leased to
(1) This section applies where arrangements are entered into between an
individual and a financial institution under which the institution—
(a) purchases a major interest in land (“the first transaction”),
(b) grants to the individual out of that interest a lease (if the interest
acquired is freehold) or a sub-lease (if the interest acquired is leasehold)
(“the second transaction”), and
(c) enters into an agreement under which the individual has a right to
require the institution or its successor in title to transfer the major
interest purchased by the institution under the first transaction.
(2) The first transaction is exempt from charge if the vendor is—
(a) the individual, or
(b) another financial institution by whom the interest was acquired under
arrangements of the kind mentioned in subsection (1) entered into
between it and the individual.
(3) The second transaction is exempt from charge if the provisions of this Part
relating to the first transaction are complied with (including the payment of
any tax chargeable).
(4) A transfer to the individual that results from the exercise of the right
mentioned in subsection (1)(c) (“the third transaction”) is exempt from charge
(a) the provisions of this Part relating to the first and second transactions
are complied with, and
(b) at all times between the second and third transactions—
(i) the interest purchased under the first transaction is held by a
financial institution, and
(ii) the lease or sub-lease granted under the second transaction is
held by the individual.
(5) The agreement mentioned in subsection (1)(c) is not to be treated—
(a) as substantially performed unless and until the third transaction is
entered into (and accordingly section 44(4) does not apply), or
(b) as a distinct land transaction by virtue of section 46 (options and rights
(6) The requirements of subsection (1), or (4)(b)(ii), are not met if—
(a) the individual enters into the arrangement, or holds the lease or sub-
lease, as trustee and any beneficiary of the trust is not an individual, or
(b) the individual enters into the arrangements, or holds the lease or sub-
lease, as partner and any of the other partners is not an individual.
(7) In this section “financial institution” means—
(a) a bank within the meaning of section 840A of the Taxes Act 1988, or
(b) a building society within the meaning of the Building Societies Act 1986
(8) In the application of this section to Scotland—
(a) the reference to a freehold interest is a reference to the interest of the
(b) the reference to a leasehold interest is to a tenant’s right over or interest
in a property subject to a lease.
(9) References in this section to an individual shall be read, in relation to times
after the death of the individual concerned, as references to his personal