Stamp duty relief for agreements under the Inclosure Act 1845
Inclosure Act stamp duty relief
A land transaction may be exempt from SDLT if it is made under, or follows, a qualifying agreement under the Inclosure Act 1845.
- The exemption is narrow.
- Historic documents may decide the answer.
- HMRC says to claim the relief in the SDLT return or an amendment.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty relief for agreements under the Inclosure Act 1845
Stamp duty relief for agreements under the Inclosure Act 1845
You may not have to pay stamp duty land tax if your land deal follows an agreement under the Inclosure Act 1845. This is a narrow exemption. For you, the link to that agreement is the key point.
What this rule is about
Arrangements for enclosed land were the focus of the Inclosure Act 1845. Section 163A gives an SDLT exemption for certain transactions connected with agreements under that Act.
This is not a general tax break for old land. You must carry out your transaction by, or following, the relevant agreement.
What the official source says
HMRC’s manual says that parties can treat the transaction as exempt when they effect it by, or in pursuance of, an agreement made, confirmed or used under the Inclosure Act 1845.
- The agreement must fall under that Act.
- The land deal must be made because of that agreement.
- The exemption removes the SDLT charge on that deal.
- HMRC says you must claim the relief in the SDLT return or an amendment.
What this means in practice
When the exemption applies because you can show that the agreement falls under the Act and caused the deal, SDLT does not apply to it. Do not assume that an old reference to inclosure is enough. Your paperwork must show the required connection.
- Find the agreement before the return is completed.
- Keep the agreement and related land documents.
- Make the claim in the return where possible.
- If a return was filed without it, consider whether an amendment is available.
How to analyse it
Start with the documents, not the property description. Ask what caused the land deal to happen.
- Is there an agreement under the Inclosure Act 1845?
- Was it made, confirmed or used under that Act?
- Was your transaction done by, or in pursuance of, that agreement?
- Has an SDLT return already been sent to HMRC?
Example
Under an agreement made under the Inclosure Act 1845, Nia exchanges small plots of land. If Nia carries out the exchange under that agreement and the documents show that connection when she makes her SDLT claim, section 163A may exempt it from SDLT. That link matters.
Why this can be difficult in practice
Tracing these agreements can be difficult because they can be old. Even where a transaction concerns the same land, the parties may not carry it out under the agreement. That distinction matters.
- Historic maps or titles may not explain the agreement.
- A land link alone may not establish the exemption.
- HMRC’s claim code is guidance, not the legal test.
Key takeaways
- This is a specific exemption for qualifying Inclosure Act agreements.
- The connection between the agreement and the deal matters most.
- HMRC says to claim it in the SDLT 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
- FA 2003 section 163A — exempts transactions made under qualifying inclosure agreements (provision not found on legislation.gov.uk)
- FA 2003 Schedule 10 para 6 — allows a buyer to amend an SDLT 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 supplied source does not explain what evidence will show that an agreement was made, confirmed or used under the Inclosure Act 1845.
- HMRC’s reference to code 28 at question 9 may depend on the version of the SDLT return form in use.
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 relevant Inclosure Act agreement and any confirmation
- Documents showing how the property transaction follows that agreement
- The original SDLT return, if one was filed
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 agreements under the Inclosure Act 1845 [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 163A - exempts transactions made under qualifying inclosure agreements https://www.legislation.gov.uk/ukpga/2003/14/section/163A/2025-11-17 - FA 2003 Schedule 10 para 6 - allows a buyer to amend an SDLT 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/sdltm29700 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 source does not explain what evidence will show that an agreement was made, confirmed or used under the Inclosure Act 1845. - HMRC's reference to code 28 at question 9 may depend on the version of the SDLT return form in use. 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 agreements under the Inclosure Act 1845
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