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Freeport tax sites: relief from SDLT

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HMRC has published new guidance on how to claim relief from SDLT when buying land or buildings in a designated freeport tax site. Relief can be claimed where the land or buildings will be used in a ‘qualifying way’, as follows:

  • in a commercial trade or profession;
  • for development or redevelopment for resale for commercial purposes; or
  • where the land or buildings are let to another person who pays rent – as long as they are not used as residential property.

Relief is not available for land and buildings which are to be:

  • used as residential property;
  • developed or redeveloped to become residential property; or
  • held as stock of the business to be resold without having been developed or redeveloped.

Full relief can be claimed on the total purchase price if at least 90% of the purchase price is for qualifying land or buildings. Where less than 90% relates to qualifying land or buildings, relief reflects the percentage of the land or buildings which qualify. No relief is available if less than 10% of the total purchase price is for qualifying land or buildings.

Relief can be claimed from the date a freeport tax site is designated until 30 September 2026 and all claims must be made by 14 October 2027.

Issue: 1540
Categories: News