http://www.legislation.gov.uk/ukpga/2003/14/schedule/6AFinance Act 2003An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.texttext/xmlenStatute Law Database2025-04-23Expert Participation2025-03-20 Finance Act 2003s. 87(3)(a)(ia)The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003Sch. para. 3(4)(a)reg. 1Finance Act 2003Sch. 6AThe Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003Sch. para. 3(2)reg. 1Finance Act 2003Sch. 12 para. 3(2)(aa)Bankruptcy and Diligence etc. (Scotland) Act 2007Sch. 5 para. 32s. 223s. 227(3)art. 3(2)(3)art. 4Finance Act 2003Sch. 12 para. 1ATribunals, Courts and Enforcement Act 2007Sch. 13 para. 147(2)s. 89s. 148(5)art. 2(1)(b)Finance Act 2003Sch. 12 para. 1AFinance Act 2008Sch. 43 para. 9s. 129(4)art. 2Finance Act 2003s. 57(3)Finance Act 2011Sch. 22 para. 4Finance Act 2003Sch. 17A para. 10(1)(f)(fa)Leasehold and Freehold Reform Act 2024Sch. 9 para. 12(b)s. 124(3)Finance Act 2003specified provision(s)The Abolition of the Right to Buy and Associated Rights (Wales) Act 2018 (Consequential Amendments and Savings Provisions) Regulations 2019Rheoliadau Deddf Diddymu’r Hawl i Brynu a Hawliau Cysylltiedig (Cymru) 2018 (Diwygiadau Canlyniadol a Darpariaethau Arbed) 2019reg. 5 SCHEDULE 6ASection 58A11Where a dwelling (“the old dwelling”) is acquired by a house-building company from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.2The conditions are—athat the individual (whether alone or with other individuals) acquires from the house-building company a new dwelling,bthat the individual—ioccupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, andiiintends to occupy the new dwelling as his only or main residence,cthat each acquisition is entered into in consideration of the other, anddthat the area of land acquired by the house-building company does not exceed the permitted area.3Where the conditions in sub-paragraph (2)(a) to (c) are met but the area of land acquired by the house-building company exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.4A “house-building company” means a company that carries on the business of constructing or adapting buildings or parts of buildings for use as dwellings.References in this paragraph to such a company include any company connected with it.5In this paragraph—areferences to the acquisition of the new dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;breferences to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; andcreferences to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.21Where a dwelling (“the old dwelling”) is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.2The conditions are—athat the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals who acquire new dwellings from house-building companies,bthat the individual (whether alone or with other individuals) acquires a new dwelling from a house-building company,cthat the individual—ioccupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, andiiintends to occupy the new dwelling as his only or main residence,dthat the property trader does not intend—ito spend more than the permitted amount on refurbishment of the old dwelling, oriito grant a lease or licence of the old dwelling, oriiito permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling, andethat the area of land acquired by the property trader does not exceed the permitted area.Paragraph (d)(ii) does not apply to the grant of lease or licence to the individual for a period of no more than six months.3Where the conditions in sub-paragraph (2)(a) to (d) are met, but the area of land acquired by the property trader exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.4The provisions of paragraph 1(4) (meaning of “house-building company” etc) also have effect for the purposes of this paragraph.5In this paragraph—areferences to the acquisition of a new dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;breferences to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; andcreferences to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.31Where a dwelling is acquired by a property trader from the personal representatives of a deceased individual, the acquisition is exempt from charge if the following conditions are met.2The conditions are—athat the acquisition is made in the course of a business that consists of or includes acquiring dwellings from personal representatives of deceased individuals,bthat the deceased individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of his death,cthat the property trader does not intend—ito spend more than the permitted amount on refurbishment of the dwelling, oriito grant a lease or licence of the dwelling, oriiito permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling, anddthat the area of land acquired does not exceed the permitted area.3Where the conditions in sub-paragraph (2)(a) to (c) are met, but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.4In this paragraph—areferences to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; andbreferences to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.41Where a dwelling (“the old dwelling”) is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if—athe individual has made arrangements to sell a dwelling (“the old dwelling”) and acquire another dwelling (“the second dwelling”),bthe arrangements to sell the old dwelling fail, andcthe acquisition of the old dwelling is made for the purpose of enabling the individual’s acquisition of the second dwelling to proceed,and the following conditions are met.2The conditions are—athat the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals in those circumstances,bthat the individual—ioccupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, andiiintends to occupy the second dwelling as his only or main residence,cthat the property trader does not intend—ito spend more than the permitted amount on refurbishment of the old dwelling, oriito grant a lease or licence of the old dwelling, oriiito permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling, anddthat the area of land acquired does not exceed the permitted area.Paragraph (c)(ii) does not apply to the grant of a lease or licence to the individual for a period of no more than six months.3Where the conditions in sub-paragraph (2)(a) to (c) are met, but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.4In this paragraph—areferences to the acquisition of the second dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;breferences to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; andcreferences to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.51Where a dwelling is acquired from an individual (whether alone or with other individuals) by his employer, the acquisition is exempt from charge if the following conditions are met.2The conditions are—athat the individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of the acquisition,bthat the acquisition is made in connection with a change of residence by the individual resulting from relocation of employment,cthat the consideration for the acquisition does not exceed the market value of the dwelling, anddthat the area of land acquired does not exceed the permitted area.3Where the conditions in sub-paragraph (2)(a) to (c) are met but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.4In this paragraph “relocation of employment” means a change of the individual’s place of employment due to—ahis becoming an employee of the employer,ban alteration of the duties of his employment with the employer, orcan alteration of the place where he normally performs those duties.5For the purposes of this paragraph a change of residence is one “resulting from” relocation of employment if—athe change is made wholly or mainly to allow the individual to have his residence within a reasonable daily travelling distance of his new place of employment, andbhis former residence is not within a reasonable daily travelling distance of that place.The individual’s “new place of employment” means the place where he normally performs, or is normally to perform, the duties of his employment after the relocation.6In this paragraph—areferences to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling;breferences to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area; andcreferences to an individual’s employer include a prospective employer.61Where a dwelling is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.2The conditions are—athat the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals in connection with a change of residence resulting from relocation of employment,bthat the individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of the acquisition,cthat the acquisition is made in connection with a change of residence by the individual resulting from relocation of employment,dthat the consideration for the acquisition does not exceed the market value of the dwelling,ethat the property trader does not intend—ito spend more than the permitted amount on refurbishment of the dwelling, oriito grant a lease or licence of the dwelling, oriiito permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling, andfthat the area of land acquired does not exceed the permitted area.Paragraph (e)(ii) does not apply to the grant of a lease or licence to the individual for a period of no more than six months.3Where the conditions in sub-paragraph (2)(a) to (e) are met but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.4In this paragraph “relocation of employment” means a change of the individual’s place of employment due to—ahis becoming employed by a new employer,ban alteration of the duties of his employment, orcan alteration of the place where he normally performs those duties.5For the purposes of this paragraph a change of residence is one “resulting from” relocation of employment if—athe change is made wholly or mainly to allow the individual to have his residence within a reasonable daily travelling distance of his new place of employment, andbhis former residence is not within a reasonable daily travelling distance of that place.An individual’s “new place of employment” means the place where he normally performs, or is normally to perform, the duties of his employment after the relocation.6In this paragraph—areferences to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; andbreferences to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.71“Dwelling” includes land occupied and enjoyed with the dwelling as its garden or grounds.2A building or part of a building is a “new dwelling”if—ait has been constructed for use as a single dwelling and has not previously been occupied, orbit has been adapted for use as a single dwelling and has not been occupied since its adaptation.3“The permitted area”, in relation to a dwelling, means land occupied and enjoyed with the dwelling as its garden or grounds that does not exceed—aan area (inclusive of the site of the dwelling) of 0.5 of a hectare, orbsuch larger area as is required for the reasonable enjoyment of the dwelling as a dwelling having regard to its size and character.4Where sub-paragraph (3)(b) applies, the permitted area is taken to consist of that part of the land that would be the most suitable for occupation and enjoyment with the dwelling as its garden or grounds if the rest of the land were separately occupied.81A “property trader” means—aa company,ba limited liability partnership, orca partnership whose members are all either companies or limited liability partnerships,that carries on the business of buying and selling dwellings.2In relation to a property trader a “principal” means—ain the case of a company, a director;bin the case of a limited liability partnership, a member;cin the case of a partnership whose members are all either companies or limited liability partnerships, a member or a person who is a principal of a member.3For the purposes of this Schedule—aanything done by or in relation to a company connected with a property trader is treated as done by or in relation to that property trader, andbreferences to the principals or employees of a property trader include the principals or employees of any such company.91“Refurbishment”of a dwelling means the carrying out of works that enhance or are intended to enhance the value of the dwelling, but does not include—acleaning the dwelling, orbworks required solely for the purpose of ensuring that the dwelling meets minimum safety standards.2The “permitted amount”, in relation to the refurbishment of a dwelling, is—a10,000, orb5% of the consideration for the acquisition of the dwelling,whichever is the greater, but subject to a maximum of £20,000.10Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this Schedule.111Relief under this Schedule is withdrawn in the following circumstances.2Relief under paragraph 2 (acquisition by property trader from individual acquiring new dwelling) is withdrawn if the property trader—aspends more than the permitted amount on refurbishment of the old dwelling, orbgrants a lease or licence of the old dwelling, orcpermits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling.Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.3Relief under paragraph 3 (acquisition by property trader from personal representatives) is withdrawn if the property trader—aspends more than the permitted amount on refurbishment of the dwelling, orbgrants a lease or licence of the dwelling, orcpermits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling.4Relief under paragraph 4 (acquisition by property trader from individual where chain of transactions breaks down) is withdrawn if the property trader—aspends more than the permitted amount on refurbishment of the old dwelling, orbgrants a lease or licence of the old dwelling, orcpermits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling.Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.5Relief under paragraph 6 (acquisition by property trader in case of relocation of employment) is withdrawn if the property trader—aspends more than the permitted amount on refurbishment of the dwelling, orbgrants a lease or licence of the dwelling, orcpermits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling.Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.6Where relief is withdrawn the amount of tax chargeable is the amount that would have been chargeable in respect of the acquisition but for the relief.Sch. 6A inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 17(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)Words in Sch. 6A para. 10 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 415 (with Sch. 2)