Guidance on Land Transaction Relief for NHS Scotland Property Transfers

SDLT relief for certain NHS Scotland trust property transfers

A limited SDLT exemption can apply where land is transferred to carry out a transfer of property, rights or liabilities held on trust under section 82 of the National Health Service (Scotland) Act 1978. The exemption only applies if the transfer document is made for that specific statutory purpose, and it must still be claimed in the SDLT return.

• The relief applies to land transactions connected with transfers of trust property, rights or liabilities under the NHS Scotland section 82 trust framework.
• The transaction must be effected by a conveyance, agreement, assignation or another formal instrument.
• The document must be made or executed specifically to give effect to the relevant statutory trust transfer, not for a separate commercial or administrative reason.
• If the conditions are met, the land transaction is exempt from SDLT, but the exemption is not automatic.
• The relief must be claimed in the SDLT return, or by amending a return already filed, using HMRC code 28 for other reliefs.
• In practice, the paperwork should clearly show the link between the land transfer and the statutory trust transfer, as the legal wording and documents are key if there is any doubt.

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SDLT relief for certain NHS Scotland trust property transfers

This page explains a narrow Stamp Duty Land Tax relief for certain transfers connected with NHS Scotland. It applies where land is transferred to give effect to a transfer of property, rights or liabilities that were held on trust under section 82 of the National Health Service (Scotland) Act 1978. If the conditions are met, the land transaction is exempt from SDLT, but the relief must still be claimed in the SDLT return.

What this rule is about

Some NHS Scotland property is held on trust under a specific statutory framework. When property, rights or liabilities held on such a trust are transferred, a land transaction may arise for SDLT purposes if land is included in what is being transferred.

This rule prevents an SDLT charge from arising on a qualifying land transaction where the transfer is made to implement that statutory trust transfer. In other words, it is a targeted exemption for a particular type of NHS Scotland reorganisation or transfer exercise.

What the official source says

HMRC’s SDLT manual states that, under section 104A of the National Health Service (Scotland) Act 1978, any land transaction is exempt from SDLT if it is effected by:

• a conveyance,
• an agreement,
• an assignation, or
• another instrument executed,

and that document is made or executed for the purpose of giving effect to a transfer of property, rights or liabilities held on trust under section 82 of the 1978 Act.

The manual also says that the relief is not automatic in procedural terms. It must be claimed in a land transaction return, or by amending a return that has already been filed. HMRC instructs filers to use code 28, “Other reliefs”, at question 9 of the return.

What this means in practice

The key point is that this is a purpose-based exemption. The document effecting the land transaction must be made for the purpose of implementing a transfer of trust property, rights or liabilities within the section 82 framework.

For a taxpayer or conveyancer, that means two separate questions matter:

• Is the land or interest being transferred part of a transfer of property, rights or liabilities held on trust under section 82 of the 1978 Act?
• Is the conveyance, agreement, assignation or other instrument actually made to give effect to that transfer?

If the answer to both is yes, the transaction may fall within the exemption. If the transfer is for some other reason, or only loosely connected with the trust transfer, the relief may not apply.

Even where no SDLT is payable because the exemption applies, the official material makes clear that the relief must be claimed through the SDLT return process. So the compliance step still matters.

How to analyse it

A sensible way to approach this relief is to work through the following points.

• Identify the legal basis of the trust property. The source material specifically refers to property, rights or liabilities held on trust under section 82 of the National Health Service (Scotland) Act 1978.
• Identify the transaction document. The exemption applies where the land transaction is effected by a conveyance, agreement, assignation or other instrument.
• Check the purpose of that document. The document must be made or executed for the purpose of giving effect to the relevant transfer.
• Confirm that there is a land transaction for SDLT purposes. The rule exempts a land transaction from charge; it does not say that no return machinery applies.
• Make the claim correctly. HMRC says the relief must be claimed in the land transaction return or in an amended return, using code 28.

In practice, the supporting paperwork should show clearly why the transfer is being made and how it connects to the statutory trust transfer. The closer the documentation tracks the statutory purpose, the easier it is to see why the exemption is being claimed.

Example

Illustration: a Scottish health body transfers land that has been held on trust under the section 82 regime as part of a formal transfer of trust property and related rights. The transfer is carried out by a conveyance whose purpose is to implement that statutory transfer. On the basis of the HMRC material, that land transaction would be exempt from SDLT, provided the relief is properly claimed in the SDLT return.

By contrast, if land connected with an NHS body is transferred for a separate commercial or administrative reason, the exemption would not apply merely because an NHS entity is involved. The source material ties the exemption to a specific statutory trust transfer purpose.

Why this can be difficult in practice

The source material is brief, but the underlying issue can still be fact-sensitive.

The main difficulty is usually identifying whether the transaction document is truly made “for the purpose of giving effect to” the relevant transfer. That wording suggests a direct connection is needed. If the land transfer sits within a wider set of arrangements, it may be necessary to decide whether it is genuinely part of the section 82 trust transfer or whether it is a separate step with its own independent purpose.

Another practical point is procedural. Because the exemption must be claimed, an otherwise qualifying transaction could still create compliance problems if the return is completed incorrectly or the relief code is omitted.

The HMRC manual is guidance on HMRC’s approach. The legal basis for the exemption comes from the legislation it cites, not from the manual itself. So if there is any doubt about whether a particular transfer falls within section 82 and section 104A, the statutory wording and the transaction documents are what matter most.

Key takeaways

• This is a specific SDLT exemption for land transactions made to implement certain transfers of trust property, rights or liabilities under the NHS Scotland statutory framework.
• The exemption depends on the purpose of the conveyance, agreement, assignation or other instrument, not simply on the fact that an NHS body is involved.
• The relief must be claimed in the SDLT return or an amended return, using HMRC’s code 28 for other reliefs.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guidance on Land Transaction Relief for NHS Scotland Property Transfers

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