Stamp duty exemption for NHS trusts and other NHS bodies
NHS stamp duty exemption
Listed NHS and health service bodies can buy land without SDLT. The legal buyer must be one of the bodies named in Finance Act 2003 section 67A.
- Check the buyer’s exact legal status.
- Claim the exemption in the SDLT return or an amendment.
- HMRC’s manual says to use code 28 at question 9.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty exemption for NHS trusts and other NHS bodies
Some NHS bodies do not have to pay stamp duty land tax when they buy land in England or Northern Ireland.
The key point is simple: the legal buyer must be a body that the law lists, and that buyer must claim the exemption.
What this rule is about
This exemption applies specifically to named health service bodies. It does not provide a general exemption for every organisation that provides health care, works with the NHS, or receives NHS funding.
That distinction matters. The name on the contract and transfer must identify a qualifying body. A related company, charity or supplier does not qualify merely because it supports NHS services.
What the official source says
HMRC’s manual says a buyer can claim an exemption for a land purchase if it is one of the listed bodies below. The legislation takes the same approach: it names the bodies that can use the exemption.
- NHS England qualifies.
- An integrated care board set up under section 14Z25 of the National Health Service Act 2006 qualifies.
- An NHS trust set up under section 25 of that Act qualifies.
- An NHS foundation trust qualifies.
- A Local Health Board set up under section 11 of the National Health Service (Wales) Act 2006 qualifies.
- A National Health Service trust set up under section 18 of that Welsh Act qualifies.
- A Health and Social Services trust under the Health and Personal Social Services (Northern Ireland) Order 1991 qualifies.
What this means in practice
If the named buyer appears on that list, the land purchase qualifies for an SDLT exemption.
However, the buyer must claim the exemption in the SDLT return or amend a return already sent.
HMRC’s manual also gives a filing instruction. It says to enter code 28, “Other reliefs”, at question 9 of the return. That is HMRC guidance about completing the form, not the legal test for the exemption.
- Check the exact legal name of the buyer before preparing the return.
- Make the exemption claim in the original return where possible.
- If you filed the return without the claim, consider an amendment instead.
How to analyse it
Start with the buyer, not the use of the land. A hospital site may serve NHS purposes, but that fact alone does not answer the question.
- Identify the body that is legally buying the land.
- Compare that body with the list in the legislation.
- Keep records that show how the body was set up.
- Make the claim in the SDLT return or an amendment.
Example
Suppose an NHS foundation trust buys a former clinic building. The trust is the named buyer in the contract and transfer.
It is one of the bodies listed in the law, so the purchase is exempt if the trust claims the exemption in its SDLT return.
If a separate company buys the building instead, the company is not an NHS foundation trust merely because it will lease the site to one.
Why this can be difficult in practice
Deal structure often creates the difficulty. NHS services can involve trusts, boards, companies and joint arrangements. Their everyday names may sound alike, but their legal status can differ.
- Do not assume an NHS-linked company qualifies.
- Do not rely only on branding, trading names or who will use the land.
- Check whether the named buyer is the body listed in the statute.
Key takeaways
- Only specified NHS and health service bodies can use the exemption.
- The buyer’s legal identity is the deciding fact.
- HMRC says to claim it using code 28 in question 9.
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 67A — exemption for purchases by listed health service bodies; claiming the exemption in a return or amendment
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 supplied statutory text is current only to 17 November 2025. The legislation should be checked on the official legislation website for a transaction after that date.
- The source does not explain how to treat a purchase involving more than one buyer or an NHS-related body that is not named in the list.
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 contract and transfer showing the legal buyer’s full name.
- Documents showing that the buyer is the listed NHS body, board or trust.
- A copy of the SDLT return or amendment showing the exemption claim.
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 Stamp duty exemption for NHS trusts and other NHS bodies [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 67A - exemption for purchases by listed health service bodies https://www.legislation.gov.uk/ukpga/2003/14/section/67A/2025-11-17 - FA 2003 section 67A - claiming the exemption in a return or amendment https://www.legislation.gov.uk/ukpga/2003/14/section/67A/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/sdltm29610 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 supplied statutory text is current only to 17 November 2025. The legislation should be checked on the official legislation website for a transaction after that date. - The source does not explain how to treat a purchase involving more than one buyer or an NHS-related body that is not named in the list. 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: Stamp duty exemption for NHS trusts and other NHS bodies
Search Land Tax Advice with Google
