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HMRC SDLT: Relief from SDLT for Diplomatic and Consular Premises Acquisitions Explained

Relief from Stamp Duty Land Tax (SDLT) for Diplomatic Premises

When acquiring certain diplomatic and consular properties, individuals or organisations may be eligible for relief from Stamp Duty Land Tax (SDLT). This means that no SDLT will be due on these transactions. Here are the details regarding this relief and how to apply for it.

Eligible Properties for SDLT Relief

Relief from SDLT is available for the purchase or lease of specific types of properties under the following laws:

• Diplomatic Mission Premises:
  This includes properties that are officially used as a base for a diplomatic mission or the official residence of the head of that mission. The relevant articles can be found in Articles 23 and 34 of the Vienna Convention on Diplomatic Relations, which are part of the Diplomatic Privileges Act 1964.
• Consular Premises:
  This applies to properties used for consular purposes or the official residence of the head of the consulate. Article 32 of the Vienna Convention on Consular Relations, included in the Consular Relations Act 1968, contains the relevant provisions.

How to Claim Relief

To claim the SDLT relief for these diplomatic and consular premises, you must follow specific steps:

1. Obtain Confirmation of Diplomatic Status:
   Before claiming relief, the relevant mission or consulate must obtain confirmation of the diplomatic status of the property. This must be done in line with the Diplomatic & Consular Premises Act 1987. You will need to contact the Diplomatic Missions & International Organisations Unit of the Foreign and Commonwealth Office Protocol Directorate to get this confirmation.
2. Enter the Relief Code:
   Once you have the official documentation confirming the status of the property, you need to complete a land transaction return. In the return, enter the relief code 27 at Question 9 to indicate that you are claiming relief.

Important Exclusions

It is important to note that the SDLT relief does not apply to residential properties that belong to diplomats or consular officials. This means that if a diplomat or consular representative is purchasing or leasing a private home, they will need to pay SDLT on that transaction. The relief is strictly limited to properties used for official diplomatic or consular purposes.

Examples of Eligible Transactions

Here are some examples to clarify what type of transactions might qualify for relief:

• Example 1: A government purchases a building that will serve as its embassy in the UK. Since this property is used as a diplomatic mission, it qualifies for SDLT relief.
• Example 2: A consulate leases a property to serve as its official office in the UK. Given that this is considered a consular premises under Article 32, it can also get relief from SDLT.

Key Legal References

If you want to explore the legal framework that supports this relief, the following articles and Acts are important:

• Vienna Convention on Diplomatic Relations: Specifically Articles 23 and 34.
• Diplomatic Privileges Act 1964: Incorporates the Vienna Convention’s provisions.
• Vienna Convention on Consular Relations: Refer to Article 32 for details on consular premises.
• Consular Relations Act 1968: Incorporates the provisions of the Vienna Convention for consular relations.
• Diplomatic & Consular Premises Act 1987: Governs the status of premises used for diplomatic and consular functions.

Next Steps

To summarise the steps for claiming SDLT relief:

1. Verify the diplomatic or consular status of the property with the appropriate government unit.
2. Complete your land transaction return and include relief code 27.

By ensuring you have completed these steps carefully, you can successfully apply for the relevant SDLT relief for your diplomatic or consular property acquisition.