Stamp duty relief for a municipal airport transfer
Municipal airport SDLT exemption
A land transfer may be exempt from SDLT when it moves a municipal airport undertaking to a company under the statutory routes identified in the Airports Act 1986.
- It is not a general exemption for airport land.
- The statutory scheme and transaction documents must support the claim.
- HMRC says to claim using code 28 in the SDLT return or an amendment.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty relief for a municipal airport transfer
A municipal airport transfer to a company may be exempt from stamp duty land tax. This exemption is narrow. It applies only when the transfer forms part of specified statutory arrangements.
What this rule is about
Some local authority airport businesses moved to companies under parliamentary schemes. These were statutory transfers. Land may move as part of that process. The exemption prevents SDLT from becoming a cost of the statutory transfer.
It is not a general tax break for airport land. The legal route and the paperwork both matter.
What the official source says
HMRC’s manual refers to section 76A of the Airports Act 1986. It states that a qualifying land transfer is exempt from SDLT.
- The transfer must be made by, or under, a scheme under section 15 of the Airports Act 1986.
- That scheme must concern moving a municipal airport undertaking to a company.
- Alternatively, the transfer must be made under Transport Act 1968 Schedule 4.
- For that second route, Schedule 4 must apply through section 75(3) of the Airports Act 1986.
What this means in practice
If a transfer fits either route, was made by or under the required statutory scheme, and the documents demonstrate that statutory connection, no SDLT is due on it. Airport status alone does not decide the issue. The question is whether the transfer was made under the required statutory scheme.
- Read the scheme, not just the transfer deed.
- Match each part of the transaction to the scheme.
- Keep documents showing why the statutory route applies.
How to analyse it
Begin with the legal documents that brought about the transfer. The involvement of a council or airport company does not, by itself, exempt a commercial sale of airport land.
- Identify the land and the company receiving it.
- Check whether a section 15 scheme exists.
- Check whether the transfer was made by, or under, that scheme.
- If relying on the other route, check how Transport Act 1968 Schedule 4 applies.
- Record the exemption in the SDLT filing.
Example
Under a section 15 scheme, a council transfers its airport undertaking, including land, to a company. Where the transfer is made by or under that scheme, section 76A can exempt it from SDLT. If the company later buys extra land from a private owner in an ordinary sale, this source does not show that the later purchase is exempt.
Why this can be difficult in practice
Although the exemption is linked to a statutory process, proving that the transfer followed it can be more difficult than it initially appears when several agreements were signed at different times. The evidence must connect them.
- A deed may not explain the statutory basis on its own.
- Airport use alone is not enough.
- HMRC’s manual says to claim the exemption using code 28 at question 9.
- HMRC also says the claim can be made in the return or by amending it.
Key takeaways
- This is an exemption for defined municipal airport transfer schemes.
- The scheme documents are likely to decide the answer.
- Use HMRC’s return process to make the claim.
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 76A — stamp duty exemption for municipal airport transfer schemes (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 15 — schemes transferring municipal airport undertakings to companies (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 75 — transport act provisions applying to airport transfer schemes (no link: an Act of 1986 we do not have an identifier for)
- an Act of 1968 we do not have an identifier for Schedule 4 — rules for statutory transfer schemes connected with airports (no link: an Act of 1968 we do not have an identifier for)
- FA 2003 Schedule 10 para 6 — amending an SDLT return after it is filed
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 material does not include the current full text of the Airports Act 1986 or Transport Act 1968. Their current wording and any amendments should be checked before relying on this exemption for a new transaction.
- Whether a particular transaction is effected by, or entered into in pursuance of, the required statutory scheme will depend on the scheme documents and transaction facts.
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 section 15 airport transfer scheme and documents showing that it applies.
- The agreement, transfer instrument and completion records.
- Evidence showing how Transport Act 1968 Schedule 4 applies, where that is the claimed route.
- The original SDLT return and any 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 relief for a municipal airport transfer [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 76A - stamp duty exemption for municipal airport transfer schemes - an Act of 1986 we do not have an identifier for section 15 - schemes transferring municipal airport undertakings to companies - an Act of 1986 we do not have an identifier for section 75 - transport act provisions applying to airport transfer schemes - an Act of 1968 we do not have an identifier for Schedule 4 - rules for statutory transfer schemes connected with airports - FA 2003 Schedule 10 para 6 - amending an SDLT return after it is filed 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/sdltm29670 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 material does not include the current full text of the Airports Act 1986 or Transport Act 1968. Their current wording and any amendments should be checked before relying on this exemption for a new transaction. - Whether a particular transaction is effected by, or entered into in pursuance of, the required statutory scheme will depend on the scheme documents and transaction facts. 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 relief for a municipal airport transfer
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