Q- Are there any exemptions for Stamp Duty Land Tax for employers in the case of relocation of employees?
A- Yes. Where a dwelling is acquired from an individual by his employer and certain conditions are met, the acquisition is exempt.
The conditions as in FA 2003 Sch 6A 5(2) are as follows: it must have been the individuals only or main residence at some point in time in the period of two years ending with the date of acquisition, the acquisition is made in connection with a change of residence by the individual due to relocation of employment, the consideration does not exceed the market value of the dwelling and that the area of land acquired does not exceed the permitted area.
If the first three conditions are met but the land is over the permitted area the chargeable consideration for the acquisition to be taken into account is calculated by deducting the market value of the permitted area from the market value of the dwelling.An ‘employer’ is not specifically defined. An employee is defined so as to include an office-holder. An employer will include a prospective employer. There is no requirement as to how long an employee needs to be employed prior to the acquisition.
Relocation of employment is defined as a change of the individualʼs place of employment due to:
– His becoming an employee of the employer
– An alteration of the duties of his employment with the employer OR
– An alteration of the place where he normally performs those duties