Charities Can Claim Relief From SDLT On A Joint Purchase

Summary and implications

Stamp duty land tax (SDLT) is not payable if the buyer is a charity, who is able to satisfy certain conditions and claim relief. In the joint appeals of (1) The Pollen Estate Trustee Company Limited and (2) Kings College London v HMRC¹ the Court of Appeal has clarified that if on a joint purchase one of the buyers is a charity but the other is not, relief is available to the charity on the acquisition of their interest.

Accordingly:

• a land transaction is exempt from SDLT to the extent that the buyer is a charity;
• the interpretation adopted of clear legislative language, and particularly the insertion of words to aid interpretation, seems very bold on the part of the Court of Appeal; and