Guidance on SDLT Relief for Highways Act 1980 Transactions Involving Minister

SDLT relief for trunk road highway transactions

This is a limited Stamp Duty Land Tax relief for certain land transactions under the Highways Act 1980. It only applies where the Minister is a party, the transaction relates to a highway or proposed highway that is or will become a trunk road, and the SDLT would otherwise be payable as the Minister’s expense under the Act. The relief is not automatic and must be claimed in the SDLT return.

• The relief is only for a narrow category of highway-related land transactions, not all road schemes.
• All conditions must be met: the Minister must be a party, the land must relate to a trunk road or proposed trunk road, and the SDLT must otherwise fall as a Ministerial expense under the Highways Act 1980.
• If any one of those conditions is missing, the relief will not apply on the wording of the rule.
• HMRC says the claim must be made in the land transaction return, or later by amending the return if needed.
• The SDLT return should use code 28 at question 9, described by HMRC as “Other reliefs”.
• In practice, the main difficulties are checking the legal basis of the transaction and whether it is closely linked enough to trunk road functions under the Act.

Scroll down for the full analysis.

SDLT relief for certain highway transactions involving trunk roads

This page explains a narrow Stamp Duty Land Tax relief for land transactions connected with trunk roads under the Highways Act 1980. The relief applies where the Minister is a party to the transaction and the SDLT would otherwise fall as an expense of the Minister under that Act. Although the rule is short, it matters because the relief is not automatic: it must be claimed in the SDLT return.

What this rule is about

Some land transactions take place because land is needed for highway purposes. Section 281A of the Highways Act 1980 provides an exemption from SDLT for certain transactions involving trunk roads.

The rule is aimed at transactions where the government, acting through the Minister for the purposes of the Highways Act 1980, acquires or deals with land in connection with a highway or proposed highway that is, or will become, a trunk road.

The key point is that this is not a general relief for all road-related land transactions. It is limited to a specific category of transaction defined by the legislation and reflected in HMRC’s manual.

What the official source says

HMRC’s manual says that a transaction is exempt from charge if all of the following apply:

• the Minister, for the purposes of the Highways Act 1980, is a party to the transaction;
• the transaction relates to a highway or proposed highway which is, or is to become, a trunk road; and
• SDLT would otherwise be payable as an expense incurred by the Minister under the Highways Act 1980.

The manual also states that the relief must be claimed in a land transaction return, or by amending the return. The return should use code 28, described as “Other reliefs”, at question 9.

What this means in practice

In practical terms, the relief removes an SDLT charge that might otherwise arise on a qualifying land transaction connected with trunk road functions under the Highways Act 1980.

There are three practical questions built into the rule:

• Is the Minister actually a party to the transaction?
• Does the land transaction relate to a highway or proposed highway that is or will become a trunk road?
• If there were no relief, would the SDLT be payable as an expense incurred by the Minister under the Highways Act 1980?

If the answer to any of these is no, the relief does not appear to apply on the wording provided.

The procedural point is also important. Even where the transaction qualifies, the relief must be claimed. The HMRC material does not describe it as automatic. That means the return needs to be completed on the correct basis, or amended if the point is identified later.

How to analyse it

A sensible way to approach the issue is to work through the rule in order.

First, identify the parties. The transaction must be one “to which the Minister is a party” for Highways Act 1980 purposes. A transaction merely connected with a highway project is not enough if the Minister is not actually a party.

Second, identify the subject matter of the transaction. The transaction must relate to a highway or proposed highway. The rule then narrows this further: the highway must already be a trunk road, or it must be intended to become one.

Third, test the SDLT point. The manual says the exemption applies where SDLT would otherwise be payable as an expense incurred by the Minister under the Highways Act 1980. So the transaction needs to fall within that statutory framework, not merely be commercially associated with a road scheme.

Fourth, check the filing position. If a land transaction return is required, the relief should be claimed in the return. If the return has already been filed without the claim, the manual indicates that the claim can be made by amendment.

A useful checklist is:

• Who are the legal parties to the land transaction?
• What land is being acquired or dealt with?
• What is the highway purpose?
• Is the relevant road a trunk road, or intended to become one?
• Would the SDLT otherwise be a Ministerial expense under the Highways Act 1980?
• Has the relief been positively claimed in the SDLT return?

Example

Illustration: land is transferred to the Minister as part of a scheme for a proposed highway that will become a trunk road. Without relief, SDLT would arise on the transaction and would be payable as an expense incurred by the Minister under the Highways Act 1980. On the HMRC guidance provided, that transaction falls within the exemption, provided the relief is claimed in the land transaction return using the appropriate code.

By contrast, if land is transferred for a road-related project but the Minister is not a party to the transaction, or the road is not a trunk road and is not to become one, the relief described here would not be available on the wording of the source.

Why this can be difficult in practice

The source material is brief, and most of the difficulty lies in applying the statutory conditions to real facts.

One issue is identifying whether the transaction truly “relates to” a highway or proposed highway of the required kind. That may be straightforward in a direct land acquisition for a trunk road scheme, but less clear in more indirect arrangements.

Another issue is the reference to SDLT being payable “as an expense incurred by the Minister” under the Highways Act 1980. That wording points to a close link between the SDLT liability and the Minister’s statutory functions and expenditure under the Act. In marginal cases, the answer may depend on the legal basis of the transaction, not just its commercial purpose.

A further practical risk is procedural. Because the manual says the relief must be claimed in the return or by amendment, a qualifying transaction may still need corrective action if the claim was omitted when filing.

Key takeaways

• This is a specific SDLT exemption for certain transactions involving the Minister and trunk roads under the Highways Act 1980.
• The transaction must meet all stated conditions, including that the highway is or will become a trunk road and that the SDLT would otherwise be a Ministerial expense under the Act.
• The relief is not simply assumed; it must be claimed in the land transaction return, using code 28 according to HMRC’s manual.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guidance on SDLT Relief for Highways Act 1980 Transactions Involving Minister

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