How section 75A sets the amount used for stamp duty
The key point
For section 75A, the amount used for an assumed sale may be the largest relevant amount paid or received across linked property steps.
- Include non-cash value.
- Check connected people.
- Consider rules that exclude or split payments.
Scroll down for the full analysis.
Read the original guidance here:
How section 75A sets the amount used for stamp duty
Section 75A can treat a set of linked property steps as one assumed sale for stamp duty. An assumed sale can use an amount higher than the price in one contract. That can matter.
What this rule is about
This rule forms part of the anti-avoidance stamp duty land tax rules, and it can apply when a series of steps produces less tax than an assumed direct sale would produce. That is the test.
To answer that question, the law needs an amount for the assumed sale. It does not simply select the figure that seems most convenient.
What the official source says
HMRC’s manual says the amount used is the largest relevant amount, or relevant total amount, found in the scheme transactions. A scheme transaction is one of the steps in the arrangements.
- Look at amounts given by, or for, any one person.
- Look at amounts received by, or for, the original seller.
- Also look at amounts received by someone connected with that seller.
- Apply the statutory connected-person test, not an everyday impression of who is linked.
- Include the money value of something given instead of cash.
What this means in practice
A payment can count even when it goes to an intermediary rather than directly to the seller. You may likewise need to value a non-cash benefit. The paperwork must show the whole picture.
- Do not rely on one purchase price in isolation.
- List payments across every step of the arrangements.
- Record who made each payment and who received it.
- Identify payments in cash and items given instead of cash.
How to analyse it
Trace the property’s route from the original seller to the final buyer, then follow every relevant payment through that route, including payments that somebody makes for somebody else. Keep the sequence clear.
- Identify the original seller and the final buyer.
- Map each transaction in the arrangements.
- Add amounts that each individual person pays or pays for where required.
- Add amounts that the seller and connected people receive or receive for where required.
- Value any non-cash item.
- Check whether another rule removes or adjusts a payment.
Example
Amir pays £500,000 during a set of property steps. The original seller’s connected company receives £560,000 during those steps. On these simplified facts, £560,000 is the larger relevant figure for the assumed sale. This example does not calculate the tax because the wider facts and date determine the applicable rate, and you must consider them before identifying the rate. The example calculates no tax.
Why this can be difficult in practice
You will often need to decide which payments belong to the arrangements and whether the statutory test connects each recipient with the original seller. Arithmetic is usually easier.
HMRC’s page also flags further rules. HMRC may ignore payments for a merely incidental transaction. Other rules can require a fair split of an amount or disregard particular payments.
- A side payment may still matter if it helped bring about the transfer.
- Calling a step separate does not settle whether it forms part of the arrangements.
- A payment for land and something else may need to be split fairly.
- HMRC’s manual is its view, rather than the law itself.
Key takeaways
- The assumed sale can use more than one contract price.
- Payments to connected people can be relevant.
- Cash is not the only thing that counts.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 section 75A — when the anti-avoidance rule can apply; setting the amount paid in the assumed sale
- FA 2003 section 75B — ignoring payments for merely incidental transactions
- FA 2003 section 75C — disregarding some payments covered by reliefs; fairly splitting payments covering more than one interest; including non-cash items at their money value
- an Act of 2010 we do not have an identifier for section 112 — the test for whether people are connected (no link: an Act of 2010 we do not have an identifier for)
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- Whether a payment is part of the relevant arrangements, merely incidental, or given for more than one interest can depend closely on the documents and facts.
- Whether two people are connected must be tested under the statutory definition rather than assumed from a business or family link.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- A diagram and full list of every step in the arrangements.
- Contracts, transfer papers, invoices, completion statements and bank records.
- Details of every cash and non-cash payment.
- Evidence of who received each amount and whether they are connected with the original seller.
- Evidence showing whether a transaction was merely incidental or formed part of the transfer process.
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION How section 75A sets the amount used for stamp duty [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 section 75A - when the anti-avoidance rule can apply https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 - FA 2003 section 75A - setting the amount paid in the assumed sale https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 - FA 2003 section 75B - ignoring payments for merely incidental transactions https://www.legislation.gov.uk/ukpga/2003/14/section/75B/2025-11-17 - FA 2003 section 75C - disregarding some payments covered by reliefs https://www.legislation.gov.uk/ukpga/2003/14/section/75C/2025-11-17 - FA 2003 section 75C - fairly splitting payments covering more than one interest https://www.legislation.gov.uk/ukpga/2003/14/section/75C/2025-11-17 - FA 2003 section 75C - including non-cash items at their money value https://www.legislation.gov.uk/ukpga/2003/14/section/75C/2025-11-17 - an Act of 2010 we do not have an identifier for section 112 - the test for whether people are connected Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09220 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - Whether a payment is part of the relevant arrangements, merely incidental, or given for more than one interest can depend closely on the documents and facts. - Whether two people are connected must be tested under the statutory definition rather than assumed from a business or family link. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 31 August 2026
Useful article? You may find it helpful to read the original guidance here: How section 75A sets the amount used for stamp duty
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