Finance Act 2003

Section 49

SCHEDULE 3 Stamp duty land tax: transactions exempt from charge

No chargeable consideration

1 A land transaction is exempt from charge if there is no chargeable consideration for the transaction.

Grant of certain leases by registered social landlords

2 (1) The grant of a lease of a dwelling is exempt from charge if the lease—

(a) is granted by a registered social landlord to one or more individuals in accordance with arrangements to which this paragraph applies, and

(b) is for an indefinite term or is terminable by notice of a month or less.

(2) This paragraph applies to arrangements between a registered social landlord and a housing authority under which the landlord provides, for individuals nominated by the authority in pursuance of its statutory housing functions, temporary rented accommodation which the landlord itself has obtained on a short-term basis.

The reference above to accommodation obtained by the landlord “on a short-term basis” is to accommodation leased to the landlord for a term of five years or less.

(3) A “housing authority” means—

(a) in relation to England and Wales—

(i) a principal council within the meaning of the Local Government Act 1972 (c. 70), or

(ii) the Common Council of the City of London;

(b) in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39);

(c) in relation to Northern Ireland—

(i) the Department for Social Development in Northern Ireland, or

(ii) the Northern Ireland Housing Executive.

Transactions in connection with divorce etc

3 A transaction between one party to a marriage and the other is exempt from charge if it is effected—

(a) in pursuance of an order of a court made on granting in respect of the parties a decree of divorce, nullity of marriage or judicial separation;

(b) in pursuance of an order of a court made in connection with the dissolution or annulment of the marriage, or the parties' judicial separation, at any time after the granting of such a decree;

(c) in pursuance of—

(i) an order of a court made at any time under section 22A, 23A or 24A of the Matrimonial Causes Act 1973 (c. 18), or

(ii) an incidental order of a court made under section 8(2) of the Family Law (Scotland) Act 1985 (c. 37) by virtue of section 14(1) of that Act;

(d) at any time in pursuance of an agreement of the parties made in contemplation or otherwise in connection with the dissolution or annulment of the marriage, their judicial separation or the making of a separation order in respect of them.

Variation of testamentary dispositions etc

4 (1) A transaction following a person’s death that varies a disposition (whether effected by will, under the law relating to intestacy or otherwise) of property of which the deceased was competent to dispose is exempt from charge if the following conditions are met.

(2) The conditions are—

(a) that the transaction is carried out within the period of two years after a person’s death, and

(b) that no consideration in money or money’s worth other than the making of a variation of another such disposition is given for it.

(3) This paragraph applies whether or not the administration of the estate is complete or the property has been distributed in accordance with the original dispositions.

Power to add further exemptions

5 (1) The Treasury may by regulations provide that any description of land transaction specified in the regulations is exempt from charge.

(2) The regulations may contain such supplementary, incidental and transitional provision as appears to the Treasury to be appropriate.