Crofting community right to buy: the former SDLT rule
Former crofting rule
HMRC’s manual refers to a former SDLT rate rule for qualifying crofting community right-to-buy purchases. It is not a current England and Northern Ireland stamp duty relief.
- Section 75 was omitted from 1 April 2015.
- The transaction date is essential.
- Check the historic law before reaching a conclusion.
Scroll down for the full analysis.
Read the original guidance here:
Crofting community right to buy: the former SDLT rule
This is not a current stamp duty relief for buying land in England or Northern Ireland. HMRC’s manual mentions a former Scottish SDLT rule that applied when a crofting community used its right to buy.
What this rule is about
In Scotland, the crofting community right to buy gives communities a special land right. Under the former rule, when a qualifying community bought land under that right, section 75 could alter how the community calculated SDLT for that purchase.
That matters mainly for old transactions. It does not create a general discount for a community group buying rural land.
What the official source says
HMRC’s manual says that, where a crofting community made the purchase and met the relevant conditions, relief may have been available under the former Scottish SDLT rule. It points to Finance Act 2003 section 75, which set rules for the SDLT rate.
- The buyer had to be a crofting community.
- The purchase had to use the community right to buy.
- Section 75 dealt with the rate of SDLT.
- HMRC describes this as possible relief, not an automatic result.
What this means in practice
The date is the key point. From 1 April 2015, the SDLT legislation no longer included section 75. A purchase on or after that date cannot use it as a current SDLT relief.
- Check when the purchase took effect.
- Check whether it was in Scotland.
- Do not assume the rule applies to an ordinary land purchase.
- Keep papers showing the right that was exercised.
How to analyse it
Begin with the facts rather than the group’s name. Then compare those facts with the historic law in force on the relevant date.
- Find the effective date of the purchase.
- Confirm that the buyer was a crofting community.
- Confirm the right to buy relied on.
- Obtain the historic text of section 75.
Example
Illustration: a crofting community completed a land purchase on 31 March 2015 under its right to buy, a transaction for which the former rule may need checking. The date matters. Had it completed on 1 April 2015 instead, section 75 would already have been removed, so it cannot provide the answer.
Why this can be difficult in practice
The HMRC page is very short. It does not explain the old calculation or every condition. A label such as “community purchase” is insufficient.
- Old SDLT records may use outdated terms.
- The legal effect depends on the transaction date.
- The former wording must be checked before calculating any historic tax.
Key takeaways
- This was a former Scottish SDLT rule.
- Section 75 ended from 1 April 2015.
- Historic cases need the law in force at the time.
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 75 — historic rate rule for crofting community purchases
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
- The precise historic calculation under section 75 needs checking against the version in force on the transaction date.
- The brief does not provide enough facts to decide whether a particular historic purchase fell within the former rule.
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.
- the completion or other effective date
- documents showing the community’s right to buy
- the land-transfer documents and amount paid
- the historic version of section 75 in force at the time
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 Crofting community right to buy: the former SDLT rule [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 75 - historic rate rule for crofting community purchases https://www.legislation.gov.uk/ukpga/2003/14/section/75/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm29005 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 - The precise historic calculation under section 75 needs checking against the version in force on the transaction date. - The brief does not provide enough facts to decide whether a particular historic purchase fell within the former rule. 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: Crofting community right to buy: the former SDLT rule
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