Stamp Duty Land Tax Relief for Property Traders in Employment Relocation Cases

SDLT relief for property traders buying a relocating employee’s former home

This SDLT relief can exempt a property trader from Stamp Duty Land Tax when buying someone’s old home because that person has to move for work. It only applies in narrow relocation cases, so the buyer, the reason for the move, the price paid, the amount of land, and the trader’s actions after purchase must all meet the statutory conditions.

• The buyer must be a genuine property trader acting in a business that includes buying homes from individuals who are relocating because of employment.
• The property must have been the seller’s only or main residence at some point in the two years before the purchase, and the purchase must be made because of a qualifying job-related move.
• A qualifying relocation can include starting a job, changing duties, or moving workplace, but the home move must be mainly so the person can live within a reasonable daily travelling distance of the new normal workplace.
• The price paid must not exceed market value, and if the land is larger than the permitted area, only partial relief may apply, with SDLT charged on the excess by reference to market value.
• Relief can later be withdrawn if the trader refurbishes beyond the permitted amount, grants occupation rights, or allows connected persons to occupy the property, except for a limited case where the seller stays on for up to six months under a lease or licence.

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SDLT relief when a property trader buys a home because the owner is relocating for work

This page explains a specific Stamp Duty Land Tax relief for property traders who buy a person’s old home when that person has to move because of a job relocation. If the conditions are met, the purchase can be exempt from SDLT. The rule is narrow and condition-based, so the key question is whether the purchase really falls within this employment-relocation framework.

What this rule is about

This relief applies where a property trader buys a dwelling from an individual who is moving home because of a change in employment. The policy behind it is to remove SDLT where a trader is effectively helping someone sell their old home as part of a work-related move.

It is not a general relief for all purchases by property businesses. It only applies where the business includes buying dwellings from individuals in relocation cases, and where the detailed statutory conditions are satisfied.

What the official source says

HMRC’s manual says the acquisition is exempt from SDLT if all of the following conditions are met:

• the buyer is a property trader and the acquisition is made in the course of a business that consists of, or includes, acquiring dwellings from individuals who are changing residence because of a relocation of employment
• the individual occupied the old dwelling as their only or main residence at some point in the two years before the purchase
• the purchase is made because the employee had to change residence due to a job relocation
• the purchase price does not exceed market value
• the land acquired does not exceed the permitted area

If the land acquired is more than the permitted area, HMRC says partial relief may still be available if the other conditions are met. In that case, part of the consideration becomes chargeable to SDLT.

The chargeable amount is the difference between:

• the market value of the whole property acquired, including all the land, and
• the market value of the permitted area, meaning the dwelling and the amount of land that qualifies

The manual also explains what counts as a relocation of employment. It includes a change in the individual’s place of employment because they:

• become an employee of the employer
• change duties with the employer, or
• change the place where they work for the employer

A change of residence counts only if it is made wholly or mainly so that the individual can live within a reasonable daily travelling distance of the new place of work. The new place of work is the place where the individual normally performs their duties after the relocation.

HMRC also says relief is withdrawn if the property trader:

• spends more than the permitted amount on refurbishing the dwelling
• grants a lease or licence of the dwelling
• allows any of its principals or employees, or anyone connected with them, to occupy the dwelling

There is one specific exception. Relief is not denied or withdrawn merely because the trader intends to let the individual stay in the old dwelling for up to six months, and then actually grants that lease or licence after buying it.

What this means in practice

The relief is aimed at a fairly specific commercial model: a trader buys a relocating employee’s former home, usually to help that person move on quickly. If the transaction fits the statutory pattern, SDLT may not be payable on the acquisition.

In practice, several points matter.

First, the buyer must genuinely be acting as a property trader in a business that includes this kind of relocation purchase. A one-off purchase by a company or investor would not obviously fit just because the seller is moving for work.

Second, the old home must have been the individual’s main or only residence at some point during the two years before the purchase. The test is not limited to occupation on the exact purchase date, but there must be qualifying occupation within that two-year window.

Third, the reason for the sale matters. The purchase must be made because the employee had to change residence due to a relocation of employment. That introduces a real causal link. It is not enough that the seller happened to move jobs around the same time.

Fourth, the purchase price must not exceed market value. The relief is therefore not intended to cover overpayments.

Fifth, the amount of land matters. If the acquisition includes more than the permitted area, the relief may still apply in part, but SDLT becomes payable on the excess element as calculated by reference to market value.

Finally, relief can be lost after the purchase if the trader does certain things, such as excessive refurbishment, granting occupation rights, or allowing connected occupation. So this is not just a test at completion. Post-acquisition conduct matters as well.

How to analyse it

A sensible way to approach this relief is to work through the following questions.

• Is the buyer a property trader, and is this purchase made in the course of a business that includes buying homes from individuals who are relocating for work?
• Was the property a dwelling, and was it the seller’s main or only residence at some point in the two years before purchase?
• Was there a qualifying relocation of employment? For example, did the individual start employment, change duties, or move workplace?
• Did the individual change residence wholly or mainly so they could live within a reasonable daily travelling distance of the new workplace?
• Is the purchase being made because of that relocation, rather than for some unrelated reason?
• Is the agreed price no more than market value?
• Does the land fall within the permitted area, or is a partial-relief calculation needed?
• After purchase, will the trader avoid the events that withdraw relief?
• If the seller remains temporarily in occupation, does that fit the specific six-month exception for the individual?

The reference in HMRC’s manual to definitions in another page is important. Terms such as permitted area and permitted amount have defined meanings elsewhere in the SDLT rules, so they should be checked carefully rather than assumed.

Example

A company carries on a business that includes buying homes from employees who need to move for work. An employee is required to work at a new office in another part of the country after changing duties with the same employer. They sell their former home to the company so they can move closer to the new workplace. They had lived in that home as their main residence within the previous two years, and the company pays no more than market value.

If the land acquired is within the permitted area, the purchase may qualify for full relief. If the property includes land beyond the permitted area, the relief may only be partial, with SDLT charged on the excess element. If the company later grants occupation rights in a way not covered by the six-month exception, the relief may be withdrawn.

Why this can be difficult in practice

Several parts of this relief are fact-sensitive.

The first difficulty is causation. The purchase must be made because the employee had to change residence due to a job relocation. That can be straightforward where there is a clear employer-driven move, but less clear where there are mixed reasons for moving.

The second is the test of reasonable daily travelling distance. The manual states the test but does not set out a fixed mileage or time threshold here. That means the answer may depend on the facts, such as the nature of the journey and the location of the new workplace.

The third is identifying the new place of work. The relevant place is where the individual normally performs their duties after the relocation. That may be harder to pin down where working patterns are split across locations.

The fourth is the boundary between full and partial relief where the land exceeds the permitted area. The calculation depends on market value, so valuation evidence may matter.

The fifth is the withdrawal rules. A transaction may appear to qualify at the outset but later fail because of what the trader does after acquisition. The temporary six-month occupation exception is narrow and applies only where the trader intends to grant, and does grant, a lease or licence to the individual for no more than six months.

Key takeaways

• This is a targeted SDLT relief for property traders buying a relocating employee’s old home, not a general exemption for all trader purchases.
• The transaction must be linked to a genuine employment relocation, the price must not exceed market value, and the land rules must be checked carefully.
• Relief can be lost after the purchase if the trader refurbishes too much, grants occupation rights outside the permitted exception, or allows connected occupation.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Stamp Duty Land Tax Relief for Property Traders in Employment Relocation Cases

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