Land exchanges in a section 75A stamp duty calculation
In short
Where section 75A applies, the assumed direct deal between V and P may be treated as an exchange if land or a building is part of the payment.
- Cash is not the only relevant payment.
- Schedule 4 paragraph 5 supplies the exchange rule.
- The connected documents and values matter.
Scroll down for the full analysis.
Read the original guidance here:
Land exchanges in a section 75A stamp duty calculation
Where parties include land or a building in the payment, that choice may affect a section 75A stamp duty calculation.
If the facts meet the test, the law treats the assumed direct transaction between the original seller and final buyer as an exchange. This can alter the amount used for stamp duty.
What this rule is about
Section 75A is an anti-avoidance rule. It may apply when land passes between people through several connected steps, but those steps produce less stamp duty than a direct sale would.
Where it applies, the law constructs an assumed direct transaction. It calls the original seller V and the final buyer P. The law taxes the assumed transaction instead.
What the official source says
HMRC’s manual states that the exchange rules apply to the assumed transaction between V and P. Land may itself be payment. So may a building.
- Two or more land deals may be payment for each other.
- A person may provide land as all or part of the payment for land received.
- The exchange rules apply to the assumed direct deal if section 75A applies.
This is more than HMRC’s view. Section 75C(7) says that, where section 75A applies to the assumed deal between V and P, the statutory exchange rule in Schedule 4 paragraph 5 applies. That point is decisive.
What this means in practice
Cash is not the only relevant payment. Another plot, shop or building may be part of the bargain. That value can affect the calculation of the assumed transaction.
The distinction may sound technical. It can determine the stamp duty outcome.
- Do not look only at money paid between the parties.
- List every piece of land or building transferred as part of the bargain.
- Check whether a wider set of steps has triggered section 75A first.
How to analyse it
Begin with the whole arrangement rather than its label. A swap, contribution or separate sale label does not determine the issue.
- Identify the land interest originally held by V.
- Identify the interest that P ends up with.
- Set out every connected step, including non-land arrangements.
- Compare the stamp duty on those steps with the assumed direct deal.
- If section 75A applies, determine whether land forms part of the payment in that assumed deal.
- Work out the value required by the exchange rule.
Example
Imagine that V transfers a development site through several connected steps, P ultimately acquires it, and, if section 75A applies after those steps have been examined, the parties must consider the assumed direct transaction. That transaction is central.
The exchange rules are relevant. P’s side of the bargain involves £200,000 in cash and a smaller plot worth £300,000.
If section 75A applies, apply the exchange rules when testing the assumed V-to-P transaction. The rules do not disregard the smaller plot simply because no cash changed hands for it.
Why this can be difficult in practice
In practice, identifying the real bargain often proves difficult. The documents may record separate transfers even though the commercial arrangement connects them.
Calling a land transfer a contribution may suggest that it has no value. That does not follow. Its terms, timing and value still require examination.
- Several contracts may form one connected arrangement.
- Land given indirectly may still be relevant.
- Values and dates may need evidence, not assumptions.
Key takeaways
- Land can be payment in an assumed section 75A deal.
- The exchange rules can therefore affect stamp duty.
- Check every connected transfer, not only the cash.
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 47 — treats each side of an exchange separately
- FA 2003 section 75A — anti-avoidance rule for connected land transaction schemes
- FA 2003 section 75C — applies exchange valuation rules to the assumed deal
- FA 2003 Schedule 4 para 5 — sets the amount paid for exchanges of land
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 set of arrangements falls within section 75A can depend on all the connected steps and amounts involved.
- The supplied statutory text is current only to 17 November 2025. A transaction after that date needs a check against current legislation.
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.
- All contracts, transfers and side agreements in the arrangements
- Details and values of any land or building used as payment
- A record of who gave and received each payment or property interest
- The completion and substantial-performance dates for each step
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 Land exchanges in a section 75A stamp duty calculation [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 47 - treats each side of an exchange separately https://www.legislation.gov.uk/ukpga/2003/14/section/47/2025-11-17 - FA 2003 section 75A - anti-avoidance rule for connected land transaction schemes https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 - FA 2003 section 75C - applies exchange valuation rules to the assumed deal https://www.legislation.gov.uk/ukpga/2003/14/section/75C/2025-11-17 - FA 2003 Schedule 4 para 5 - sets the amount paid for exchanges of land https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/5/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09340 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 set of arrangements falls within section 75A can depend on all the connected steps and amounts involved. - The supplied statutory text is current only to 17 November 2025. A transaction after that date needs a check against current legislation. 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: Land exchanges in a section 75A stamp duty calculation
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