Read the original guidance here:
HMRC SDLT: SDLTM29710 – Reliefs

Grants Under the Metropolitan Commons Act 1866

Introduction to the Act

The Metropolitan Commons Act 1866 was created to manage common land in London. Common land is areas where the public has rights to access and use, often for activities like walking, picnicking, or grazing animals. This Act includes specific provisions regarding land transactions, which are situations where land ownership changes, such as buying or selling property.

Section 33 of the Act

Section 33 of the Metropolitan Commons Act 1866 provides significant relief from charges on land transactions. Specifically, it states that if the transaction is done according to a grant under section 32 of the Act, it does not incur a charge.

Key Principles

To understand how this relief works, it is essential to grasp the following ideas:

– Land Transactions: This term refers to various scenarios involving the buying and selling of land. These scenarios can include permanent changes of ownership or temporary agreements, such as leases.

– Exemption from Charge: When a land transaction is exempt, it means that no fees or taxes related to the transaction are applied. This is often beneficial for individuals and groups involved in the transaction, as it helps to lower costs.

– Grants Under Section 32: Section 32 outlines the conditions under which land can be granted. This includes situations where the land use aligns with the purposes of the Act, like promoting public access and maintaining the commons for community use.

Claiming Relief

If a person or organization engages in a land transaction that qualifies for exemption under section 33, they must formally claim this relief. The process to claim this relief is as follows:

– Land Transaction Return: Each land transaction must be documented in a land transaction return. Think of this as a formal record that details the specifics of the transaction, including who is involved, what land is affected, and the reason for the transaction.

– Amendment to Return: If a land transaction return is submitted, but later it is discovered that relief should have been claimed, an amendment can be made. This is the process of correcting or adding information to the original return.

– Entering the Correct Code: When filling out the land transaction return, you must specify the type of relief you are claiming. For the exemption under section 33 of the Metropolitan Commons Act, enter code 28, which is designated for ‘Other reliefs,’ in question 9 of the return. This code signals that your transaction has specific circumstances that make it eligible for exemption.

Examples of Relief Application

To illustrate how this relief works, consider the following scenarios:

– Example 1: Community Group Accessing Land
A local community group wishes to access a piece of common land for a public event. They receive a grant under section 32 of the Metropolitan Commons Act to temporarily use the land for this purpose. Given this grant, when they complete their land transaction return outlining their access, they can indicate that they qualify for exemption under section 33, thus avoiding any charges on their transaction.

– Example 2: Selling Land with Commons Rights
Imagine a scenario where a landowner decides to sell an area of their property that includes common land. The sale is made under a grant that reflects the rights to access and use the common land specified in section 32. When the landowner submits their land transaction return, they will again use code 28 at question 9 to claim their exemption under section 33, ensuring no fees apply to this transaction.

Key Benefits of Claiming Relief

Claiming relief under the Metropolitan Commons Act can have several advantages:

– Cost Savings: By avoiding charges, individuals and organizations save money, allowing for more funds to be allocated towards initiatives that support the use and maintenance of common land.

– Support for Community Activities: The Act facilitates community engagement by making it easier for local groups to access and utilize common land for events or gatherings without the burden of additional costs.

– Preservation of Common Land: By promoting the lawful use of common land via grants and the consequent relief of charges, the Act supports the continued maintenance and improvement of these vital public spaces.

Final Notes on the Relief Process

It is crucial to correctly fill out the land transaction return to ensure the claim for relief is processed smoothly. Should there be uncertainties or complexities during the application process, seeking legal advice or consulting with experts can help clarify requirements and ensure compliance with all relevant laws and regulations.

Additionally, it is important to keep all documentation related to the grant and the transaction itself. This includes any agreements, proof of public benefit, or community use, as these may be required by authorities to verify the relief claim at any stage.

By utilising the relief provisions under the Metropolitan Commons Act 1866 thoughtfully, individuals and organizations can promote sustainable use of common land while reducing unnecessary burdens associated with land transactions.