Stamp duty exemption for building society mergers
Building society land transfers
Stamp duty land tax can be exempt when land moves because of a statutory building-society amalgamation or transfer of engagements.
- Check that section 93 or section 94 applies.
- Show that the land transfer followed from that process.
- Claim the exemption in the SDLT return or an amendment.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty exemption for building society mergers
A building society may not have to pay stamp duty land tax when land moves under a statutory merger or transfer. The exemption is limited.
It applies only where the land move is part of one of the two specific statutory processes available under the Building Societies Act 1986. This is a narrow rule.
What this rule is about
Building societies may join together, or one society may transfer its business to another. Land may also need to move.
Without this exemption, a land transfer arising solely from the organisations’ reorganisation could create a stamp duty charge. The reorganisation causes the transfer.
What the official source says
HMRC’s manual says that a land transfer is exempt when it is made by, or occurs because of, a qualifying statutory process. Section 109A of the Building Societies Act 1986 contains the exemption.
- Two or more building societies must amalgamate under section 93.
- Or, there must be a transfer of engagements under section 94.
- The land transfer must be made by, or result from, that process.
What this means in practice
No SDLT is due where the facts meet the statutory conditions and the land transfer results from the relevant process.
A claim is still required. The exemption does not apply automatically in the return. HMRC’s manual says that it must be claimed.
- Include the claim in the land transaction return.
- Or make the claim by amending that return.
- HMRC says to enter code 28, Other reliefs, at question 9.
How to analyse it
Start with the statutory process, not the label given to the deal. Labels do not determine the outcome. Describing a deal as a merger does not by itself establish that this exemption applies.
- Identify every building society involved.
- Check whether the process is under section 93 or section 94.
- Trace the land transfer to that process.
- Check that the SDLT return makes the exemption claim.
Example
Northshire Building Society and Riverside Building Society complete an amalgamation under section 93. Because of that amalgamation, land passes to the combined society.
On those facts, the source says that the land transfer is exempt. If the land moves under a separate arrangement instead, check its connection with the statutory process. Check that link.
Why this can be difficult in practice
The central question is why the land moved. The paperwork must show that the move formed part of the statutory amalgamation or transfer of engagements. That is what matters.
- A commercial reorganisation is not necessarily a section 93 amalgamation.
- A separate land deal may fall outside the exemption.
- The return code is HMRC guidance, not the law itself.
Key takeaways
- This exemption is for two named building-society processes.
- Keep documents that connect the land transfer to that process.
- Claim the exemption in the return or an amendment.
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
- an Act of 1986 we do not have an identifier for section 93 — amalgamation of two or more building societies (no link: an Act of 1986 we do not have an identifier for)
- an Act of 1986 we do not have an identifier for section 94 — transfer of engagements between building societies (no link: an Act of 1986 we do not have an identifier for)
- an Act of 1986 we do not have an identifier for section 109A — stamp duty exemption for statutory building society transfers (no link: an Act of 1986 we do not have an identifier for)
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 available statutory material is current only to 17 November 2025. The current wording and claim process need checking for a transaction after that date.
- Whether a transfer was made under section 93 or section 94 will depend on the formal documents and statutory process used.
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.
- documents approving the amalgamation or transfer of engagements
- the statutory basis relied on for the transaction
- documents showing how and why the land moved
- the submitted SDLT return or proposed amendment
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 building society mergers [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 - an Act of 1986 we do not have an identifier for section 93 - amalgamation of two or more building societies - an Act of 1986 we do not have an identifier for section 94 - transfer of engagements between building societies - an Act of 1986 we do not have an identifier for section 109A - stamp duty exemption for statutory building society transfers HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm29650 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 available statutory material is current only to 17 November 2025. The current wording and claim process need checking for a transaction after that date. - Whether a transfer was made under section 93 or section 94 will depend on the formal documents and statutory process used. 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 building society mergers
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