Stamp duty exemption for land needed for a trunk road
Highways exemption
A narrow SDLT exemption can apply to a transaction involving the Minister for a trunk road or proposed trunk road.
- The road link must be proved.
- The SDLT must otherwise be a Ministerial Highways Act expense.
- HMRC says to use code 28 on the return.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty exemption for land needed for a trunk road
Some government road deals can be exempt from stamp duty land tax, often called SDLT. This rule is very narrow. Only Minister-involved trunk-road land transactions qualify.
What this rule is about
When the Government builds or changes a major road, it may need to buy, sell or transfer land. Without this exemption, SDLT can add to road-work costs.
The exemption does not cover ordinary house sales beside a busy road. Land does not qualify merely because it may one day serve transport.
What the official source says
HMRC’s manual says that a transaction involving the Minister can be exempt from SDLT under section 281A of the Highways Act 1980. Two linked points must be met.
- The transaction must relate to a highway or proposed highway.
- That highway must be, or be due to become, a trunk road.
- Otherwise, the Minister must have to pay any SDLT as an expense under the Highways Act 1980.
- The Minister must be a party to the transaction.
This exemption removes the SDLT charge. It is not a discount based on the value of the land.
What this means in practice
Nearby roads do not decide the issue. Instead, ask whether this particular deal forms part of a trunk-road project, whether the Minister is a party to it, and whether the Minister would otherwise bear the SDLT cost. Those conditions control the result.
- Keep the documents that explain the road project and the land transfer.
- Check which public body is actually named as a party.
- Check whether the road has trunk-road status, or whether plans would give it that status.
- Do not treat a local road scheme as enough without checking the facts.
HMRC’s manual tells claimants to claim the exemption on the SDLT return. If you have already filed the return, HMRC says you can claim it through an amendment instead.
How to analyse it
Begin with the paperwork. Labels such as “road land” or “highways land” do not settle the answer.
- Identify the land and report the transaction.
- Confirm that the Minister is a party to it.
- Find the documents linking the land to a trunk road or proposed trunk road.
- Check who would bear the SDLT cost if no exemption applied.
- Include the claim in the return, or consider an amendment where appropriate.
- Use HMRC’s code 28, described as “Other reliefs”, at question 9 of the return.
Example
Imagine the Minister acquires a strip of land needed to widen a road that is to become a trunk road. If SDLT on that transfer would otherwise be a Highways Act expense of the Minister, HMRC’s manual says the exemption can apply. The return should record the claim using code 28.
Why this can be difficult in practice
The road connection may be clear, yet the exemption can still fail if the Minister is not a party or the SDLT cost would not be the Minister’s expense. Each part matters.
- A planned road is not automatically a proposed trunk road.
- A road authority is not necessarily the Minister for this rule.
- Calling a deal a highways transaction does not prove the required link.
- HMRC’s return code is an administrative instruction, not the legal test itself.
- The supplied statutory material should be checked against current legislation for later transactions.
Key takeaways
- This exemption is for specific Ministerial trunk-road transactions.
- You need evidence of both the road link and the Minister’s SDLT expense.
- HMRC says to claim it 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 1980 we do not have an identifier for section 281A — exemption for qualifying ministerial trunk road transactions (no link: an Act of 1980 we do not have an identifier for)
- FA 2003 section 42 — stamp duty land tax charge on land transactions
- FA 2003 Schedule 10 para 6 — amending a land transaction return
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 facts must show both that the land relates to a trunk road or proposed trunk road and that any SDLT would otherwise be a Highways Act expense of the Minister.
- The supplied Finance Act 2003 material is current only to 17 November 2025. Current primary legislation should be checked for a transaction after that date.
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 showing the Minister is a party to the transaction
- Road scheme documents identifying the trunk road or proposed trunk road
- Records showing why any SDLT would otherwise be a Ministerial expense
- A copy of the filed 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 land needed for a trunk road [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 1980 we do not have an identifier for section 281A - exemption for qualifying ministerial trunk road transactions - FA 2003 section 42 - stamp duty land tax charge on land transactions https://www.legislation.gov.uk/ukpga/2003/14/section/42/2025-11-17 - FA 2003 Schedule 10 para 6 - amending a land transaction return https://www.legislation.gov.uk/ukpga/2003/14/schedule/10/paragraph/6/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm29660 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 facts must show both that the land relates to a trunk road or proposed trunk road and that any SDLT would otherwise be a Highways Act expense of the Minister. - The supplied Finance Act 2003 material is current only to 17 November 2025. Current primary legislation should be checked for a transaction after that date. 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 land needed for a trunk road
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