100% Freeports and Investment Zones stamp duty relief: the 90% land test
The 90% test in brief
Full relief can apply where qualifying land represents at least 90% of the price for a mixed land purchase.
- Use a just and reasonable price split.
- Value matters more than acreage.
- Keep maps, use evidence and valuation support.
Scroll down for the full analysis.
Read the original guidance here:
100% Freeports and Investment Zones stamp duty relief: the 90% land test
100% Freeports and Investment Zones stamp duty relief
You may get full stamp duty relief when land bought is partly inside a Freeport or Investment Zone tax site and qualifying land satisfies the value-based requirement. At least 90% of the total price must relate to qualifying land.
What this rule is about
A single purchase may bring together land inside a designated special tax site and land outside it, while only some of the land may qualify for relief. Some land may not qualify.
The law sets a simple cut-off: where qualifying land accounts for 90% or more of the amount paid, after a fair and reasonable allocation, relief covers the whole purchase price. Full relief applies.
What the official source says
HMRC’s manual explains the rule in Schedule 6C, under which the law requires a fair and reasonable division of the amount paid between qualifying land and any other land. It must be fair and reasonable.
- First, identify the land being bought.
- Work out which part is qualifying land at the relevant time.
- Allocate the total price between the qualifying and other land.
- Use a just and reasonable basis for that allocation.
- Check whether qualifying land represents at least 90% of the total price.
- If it does, the whole amount paid qualifies for relief.
What this means in practice
Do not assume a map alone determines the result, because a large field inside the site may be worth less than a smaller plot outside it. Value decides the 90% test.
This can make a major difference. Missing the 90% mark means this full-relief rule does not apply, even where most of the land area is within the site.
- Check the site boundary before treating land as qualifying.
- Keep evidence of the planned qualifying use.
- Ask how the price has been split between the plots.
- Use a valuation where the split is not obvious.
How to analyse it
Start with the price, then test the land against the statutory definition. What actually matters? Whether the qualifying part reaches 90% of value on a fair basis.
- Confirm the total amount paid for the whole purchase.
- Identify land within the designated special tax site.
- Check whether that land is intended for a qualifying use.
- Separate any land outside the site.
- Value each part on a just and reasonable basis.
- Calculate the qualifying-land percentage of the total price.
Example
HMRC gives an example of a £2,500,000 purchase of 25 acres. Twenty acres are inside the site and count as qualifying land. Although the twenty qualifying acres represent 80% of the acreage, they are valued at £2,375,000, or 95% of the price, which clears the 90% test. Full relief is available for the £2,500,000.
Why this can be difficult in practice
The difficult part is usually the valuation. You cannot choose a convenient split simply because it gives a better tax result. The split must be just and reasonable.
- More qualifying acres do not automatically mean more qualifying value.
- A boundary plan may not answer how the price should be divided.
- The intended use of the land must support its qualifying status.
- HMRC’s manual explains its view, but it is not the law itself.
Key takeaways
- The 90% test is based on value, not land area.
- A fair allocation of the total price is essential.
- Check current law for purchases after 17 November 2025.
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 Schedule 6C para 2 — when land counts as qualifying land
- FA 2003 Schedule 6C para 5 — full relief where qualifying land reaches 90%
- FA 2003 Schedule 6C para 7 — fair allocation of the amount paid between 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
- What is just and reasonable depends on the facts, including the separate value of each part of the land.
- The supplied legislation is current only to 17 November 2025. Current law and the applicable sunset date need checking for a later transaction.
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 plan showing which land falls inside the designated special tax site.
- Evidence of the intended qualifying use of the land.
- A valuation or other clear basis for splitting the price between each part of the land.
- The contract and documents showing the total amount paid.
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 100% Freeports and Investment Zones stamp duty relief: the 90% land test [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 Schedule 6C para 2 - when land counts as qualifying land https://www.legislation.gov.uk/ukpga/2003/14/schedule/6C/paragraph/2/2025-11-17 - FA 2003 Schedule 6C para 5 - full relief where qualifying land reaches 90% https://www.legislation.gov.uk/ukpga/2003/14/schedule/6C/paragraph/5/2025-11-17 - FA 2003 Schedule 6C para 7 - fair allocation of the amount paid between land https://www.legislation.gov.uk/ukpga/2003/14/schedule/6C/paragraph/7/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm20280 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 - What is just and reasonable depends on the facts, including the separate value of each part of the land. - The supplied legislation is current only to 17 November 2025. Current law and the applicable sunset date need checking for a later transaction. 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 1 September 2026
Useful article? You may find it helpful to read the original guidance here: 100% Freeports and Investment Zones stamp duty relief: the 90% land test
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