When SDLT already paid is credited to a notional transaction
SDLT already paid is not lost
If section 75A disregards a land step, SDLT paid on it is credited to the notional transaction. A further payment may still be needed.
- Section 75A replaces certain arrangements with a direct notional transaction.
- Section 75C(10) credits SDLT already paid.
- The key issue is whether section 75A applies.
Scroll down for the full analysis.
Read the original guidance here:
When SDLT already paid is credited to a notional transaction
When SDLT already paid is credited to a notional transaction
When HMRC disregards a land step under section 75A, stamp duty already paid on it does not simply disappear. Instead, the law counts it as a payment for the replacement transaction. If that replacement creates a higher SDLT bill, even after credit for SDLT paid on the disregarded land step, the taxpayer must pay the balance. It remains due.
What this rule is about
Where several connected steps move land from one person to another and produce less SDLT than a direct transfer would have done, section 75A can apply. It is an anti-avoidance rule.
The real land steps are then replaced, by law, with a made-up transaction. Lawyers call this a notional transaction. For SDLT, picture the direct land deal that the law uses.
What the official source says
HMRC’s manual says that SDLT paid on a land step later disregarded under section 75A counts as paid on the notional transaction. Section 75C(10) says the same.
- One person must dispose of the land, and another must acquire it.
- The transactions or arrangements must be connected.
- Those steps must produce less SDLT than the notional transaction.
- For SDLT, section 75A then disregards the land steps.
- A notional land transaction takes their place.
What this means in practice
This avoids charging the same payment twice. It does not, however, cap the bill at the SDLT already paid. Any shortfall on the notional transaction remains payable by the taxpayer, HMRC says.
- Keep evidence of SDLT paid on each land step.
- Set that payment against the SDLT due on the notional transaction.
- Work out whether a further amount remains due.
How to analyse it
Start by considering the overall outcome, not the labels attached to individual steps. Ask first whether section 75A applies at all.
- Identify the original owner and the final buyer.
- List every transaction and arrangement connected with the transfer.
- Set the SDLT due on the actual steps alongside the SDLT due on the notional transaction.
- Identify SDLT paid on land steps that section 75A disregards.
- Credit that payment against the notional transaction.
Example
Assume £10,000 of SDLT was paid on a land step. Section 75A applies, and the SDLT on the notional transaction is £14,000. Against that bill, the £10,000 counts, so a further £4,000 is due. This is a credit, not a refund.
Why this can be difficult in practice
In practice, attention often stays fixed on the payment that has already been made. That does not go far enough. Deciding whether the connected steps trigger section 75A, and then calculating the SDLT for the notional transaction, is the hard part.
- A transaction can include arrangements, not just signed land contracts.
- Later steps can matter when deciding if section 75A applies.
- The manual does not give a full method for calculating the extra amount.
Key takeaways
- You can credit earlier SDLT against the notional transaction.
- You must still pay any remaining SDLT.
- Whether section 75A applies comes first.
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; disregarded steps and the notional land transaction
- FA 2003 section 75C — crediting SDLT already paid to the notional transaction
- FA 2003 section 76 — duty to deliver a land transaction return
- FA 2003 section 77 — notional transactions that must be notified to HMRC
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 section 75A applies can depend on the full set of linked steps, payments and arrangements.
- The source does not explain how any extra SDLT should be calculated in a particular case.
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.
- Details of every step in the arrangement
- The SDLT returns and payments already made
- Documents showing who transferred the land and who acquired it
- Figures used to work out SDLT on the notional transaction
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 When SDLT already paid is credited to a notional transaction [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 - disregarded steps and the notional land transaction https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 - FA 2003 section 75C - crediting SDLT already paid to the notional transaction https://www.legislation.gov.uk/ukpga/2003/14/section/75C/2025-11-17 - FA 2003 section 76 - duty to deliver a land transaction return https://www.legislation.gov.uk/ukpga/2003/14/section/76/2025-11-17 - FA 2003 section 77 - notional transactions that must be notified to HMRC https://www.legislation.gov.uk/ukpga/2003/14/section/77/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09370 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. HMRC guidance is HMRC's 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 section 75A applies can depend on the full set of linked steps, payments and arrangements. - The source does not explain how any extra SDLT should be calculated in a particular case. 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: When SDLT already paid is credited to a notional transaction
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