Overlap Relief Example 5: SDLT Changes for Scottish Land Transactions

SDLT overlap relief: archived Example 5

This archived HMRC page gives very little detail about “Example 5” and does not include the facts or HMRC’s reasoning. Its main value is as a signpost: overlap relief is an SDLT rule aimed at preventing the same value being taxed twice in linked situations, but whether it applies depends on the exact facts, the legislation, and which tax regime applies.

• The source only confirms that “Example 5” was part of HMRC’s guidance on SDLT overlap relief.
• It is archived because SDLT stopped applying to Scottish land transactions from April 2015, when LBTT took over instead.
• SDLT may still be relevant for land in England and Northern Ireland, and for older Scottish transactions before the change.
• Because the actual example is missing, the page cannot be relied on to decide whether relief is available in a specific case.
• When analysing overlap relief, first check the location of the land, the transaction date, and whether SDLT, LBTT, or another property tax applies.
• HMRC manuals are guidance only; the legal answer depends on the statutory wording and the full facts of the transactions.

Scroll down for the full analysis.

SDLT overlap relief: Example 5 explained

This page is about overlap relief within Stamp Duty Land Tax and, in particular, a source page labelled “Example 5”. The official material provided here is extremely limited and does not set out the facts of the example itself. What can safely be taken from it is that the page formed part of HMRC’s SDLT guidance on overlap relief, and that it is now archived because SDLT no longer applies to land transactions in Scotland from April 2015.

What this rule is about

Overlap relief is a relief within the SDLT rules intended to prevent the same economic value being charged twice in certain linked situations. In broad terms, it deals with cases where one transaction overlaps with another so that, without relief, tax could arise more than once on substantially the same subject matter or consideration.

The source page title shows that HMRC had a series of examples explaining how the relief operates. However, the text supplied here does not include the example itself, so it is not possible to reconstruct the precise factual pattern or HMRC’s reasoning on that page.

What the official source says

The supplied source says only two things of substance:

• the page was part of HMRC’s SDLT manual under “Reliefs and exemptions: Overlap relief: Example 5”;
• the page is archived because, from April 2015, SDLT ceased to apply to land transactions in Scotland, which instead fall within Land and Buildings Transaction Tax.

That statement about Scotland is important. It does not mean SDLT ceased to exist. It means that for Scottish land transactions from that date, the relevant devolved tax became LBTT rather than SDLT.

What this means in practice

If you are researching overlap relief, this archived page title tells you that HMRC considered examples necessary to explain the relief. That usually indicates a rule that is technical and fact-sensitive.

In practice, the immediate question is jurisdiction and date:

• If the transaction concerns land in England or Northern Ireland, SDLT may still be relevant.
• If the transaction concerns land in Scotland on or after April 2015, SDLT is generally not the charging regime to consider. You would instead look at LBTT.
• If the transaction is older, the date of the transaction matters because SDLT may still have applied in Scotland before the change.

Because the actual Example 5 facts are missing, this source cannot safely be used to answer whether relief is available in any particular case. It is only a signpost to a topic within the SDLT manual.

How to analyse it

Given the limited source text, a sensible approach is:

• Identify which tax applies: SDLT, LBTT, or LTT, depending on the location of the land and the effective date.
• If SDLT applies, identify the exact overlap relief provision and obtain the full legislative wording and any complete HMRC manual examples.
• Check whether there are multiple transactions, linked arrangements, or a sequence of grants, surrenders, assignments, or acquisitions that might create double counting.
• Ask what value is potentially being taxed twice and whether the legislation actually gives relief for that overlap.
• Distinguish between the legislation itself and HMRC’s examples. The examples may help explain HMRC’s view, but the legal answer depends on the statute.

Example

Illustration: a reader finds an archived HMRC page on SDLT overlap relief while looking at a Scottish land transaction completed after April 2015. The practical point from the source is that this is likely the wrong tax regime. The reader should first check LBTT rather than assuming the SDLT manual applies.

Why this can be difficult in practice

This is difficult for two reasons. First, archived manual pages often remain searchable, but they may relate to a tax that no longer applies to the transaction in question. Secondly, overlap relief is a technical area where the result can turn on the precise sequence of transactions and the exact statutory mechanism. A page title alone is not enough to determine the tax treatment.

There is also a broader interpretative point. HMRC manual material is guidance, not legislation. Even where a full example is available, it should be used to understand HMRC’s approach, not as a substitute for the statutory rules.

Key takeaways

• This source does not contain the substance of Example 5, only its title and an archival note.
• The archival note matters because SDLT no longer applies to Scottish land transactions from April 2015; LBTT applies instead.
• For any real overlap relief question, you need the full statutory provision and the complete factual context, not just this page heading.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Overlap Relief Example 5: SDLT Changes for Scottish Land Transactions

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