ABSTRACT
In the operation of Stamp Duty Land Tax (SDLT) there is an important difference in the application of the tax between residential property and that which is not. SDLT requires the property to be residential in character, rather than owner occupied, to be subject to Capital Gains Tax (CGT) relief. The statutory definition of residential property first appeared in the Finance Act (FA) 2002 which inserted new ss 92A and 92B into the FA 2001 after s 92, the three sections together providing for exemptions from stamp duty in Designated Disadvantaged Areas (DDAs), exemptions which continue for SDLT. One approach would be to apply the time when a material operation is carried out in accordance with s 56 of the Town and County Planning Act 1990. The extent of the appropriate area of land is considered in Inland revebue (IR) Tax Bulletin 18 of 1995 and the Capital Gains Tax Manual published by Her Majesty's Revenue and Customs (HMRC).
