Working out your Stamp Duty
This relief only applies to land transfers. When the relief applies the rate of Stamp Duty is 1%. To qualify for the relief, you and the person who transfers the land to you must be related persons. For instruments executed before 25 December 2017 in addition:
- the person who transfers the land to you must be under 67 years of age at the date they transfer the land
- where there are co-owners of the land, they must all be under 67.
Related persons include lineal descendants, civil partners, the civil partner of a parent and adopted children. You should check the full list of related persons who qualify in Schedule 1 of the Stamp Duty Tax and Duty Manual.
In addition you must either:
- farm the land for at least six years
- lease it for at least six years to someone who will farm it.
If you are farming the land, you must:
- hold a specified qualification or obtain it within a period of four years from the date you get the land
- spend at least 50% of your time farming land (including this land transfer).
If, instead of farming the land yourself, you lease it to someone else to farm, that person must:
- hold a specified qualification or obtain it within a period of four years from the date you got the land
- spend at least 50% of their time farming land (including this land transfer).
You, or the person leasing the land, must:
- farm it on a commercial basis
- intend to make a profit from it.
If you fail to abide by these terms, you no longer qualify for the relief and must:
- amend your Stamp Duty return to remove the relief
- pay the Stamp Duty and any interest due.
The way in which you can qualify for this relief has changed over the years. We have set out here how it applies to instruments executed on or after 1 January 2016. You should check the legal wording if you are claiming it for an instrument executed before then.
Next: Farm Consolidation Relief