Linked property deals: how to complete SDLT1 question 13
Linked transactions at a glance
Property purchases can be linked even when they use separate contracts. That can change how SDLT is calculated and how question 13 of form SDLT1 must be completed.
- Linked deals are part of one scheme, arrangement or series.
- HMRC’s manual sets out when one SDLT1 may be used.
- A package price must be split on a just and reasonable basis.
Scroll down for the full analysis.
Read the original guidance here:
Linked property deals: how to complete SDLT1 question 13
When you buy two or more properties as part of one deal, HMRC may calculate stamp duty from their combined price, so you must report that link in question 13 of the SDLT1 return. Missing it can misstate the tax.
What this rule is about
Linked transactions are property purchases that belong together. They may use separate contracts, cover separate plots, or complete on separate dates. What matters is whether they form one scheme, arrangement or series.
Usually, the transactions must involve the same buyer and seller. Connected-person rules can also link transactions when a buyer or seller has a connection with a party to the other deal. A different name on the paperwork does not always end the question.
Why does this matter? SDLT normally uses bands. Combining the prices can move part of the total into a higher band. The law then allocates the resulting tax between the individual purchases.
That can change the tax bill.
What the official source says
HMRC’s manual tells you to answer the linked-transactions question “Yes” when another transaction links to it and to enter the total amount paid for all linked transactions, including VAT. Include VAT. If it is not linked, answer “No” and leave the remaining part blank.
HMRC also explains its process for reporting the deals. This guidance helps you complete the return. The legislation decides whether purchases are linked.
- The legislation defines linked transactions as parts of one scheme, arrangement or series.
- The deals must involve the same buyer and seller, or people connected with them.
- HMRC permits buyers to use one SDLT1 only when all transactions meet its listed form conditions.
- They must have the same effective date: usually the date that counts for SDLT.
- They must have identical buyers and identical sellers for HMRC’s one-form method.
- They must fall within the same question 2 code: A, F, L or O.
- They must either claim no relief, or all claim the same relief code.
- If any condition fails, HMRC requires a separate SDLT1 for each transaction.
Section 108 of the Finance Act 2003 allows buyers to make one return for linked notifiable transactions when they have the same effective date, while HMRC’s manual adds practical limits to its single-form route. The manual adds practical limits.
What this means in practice
Before anything else, decide whether the purchases are linked. Do not start by counting contracts. Signing two contracts together may point to a link, but the contracts themselves do not decide it.
Then choose the HMRC filing route that fits the facts, because a single SDLT1 is simpler only when every condition in the manual applies. Separate forms prove nothing.
- For codes F and O, HMRC says to put the combined price at questions 10 and 13.
- For code A, HMRC says the combined amount goes at question 13 and should match question 10.
- For code L, HMRC requires total premium. Enter zero where none exists.
- For a single form, question 14 should show the total SDLT for all reported transactions.
- For a single form, question 26 should show the total number of properties.
- HMRC says the first property’s address goes on the SDLT1.
- The other properties go on the relevant supplementary form: SDLT3 or SDLT4.
- For separate SDLT1 forms, each return shows its own property’s price and its own share of tax.
When you use separate returns, question 13 still records the combined price for all linked deals apart from rent, and you must select the tax rate by reference to that combined figure. Question 14 shows that return’s tax.
How to analyse it
Start with the wider arrangement, keep the answers and supporting documents together, and take particular care where one overall price covered several properties. Keep the evidence.
- List every property deal that forms part of the wider arrangement.
- Check who is buying and selling in each deal.
- Use the statutory connected-person rules to check whether they connect any parties.
- Read the contracts, negotiations and completion papers together.
- Ask whether the purchases form one commercial scheme, arrangement or series.
- Record the effective date for each transaction.
- Identify the SDLT1 code and any relief code for every transaction.
- Test whether all of HMRC’s conditions for one SDLT1 are met.
- If not, prepare one SDLT1 for each linked transaction.
- Calculate tax by using the total relevant price, then allocate it as the law requires.
- Where one price covers several deals, split it on a just and reasonable basis.
- Keep notes and evidence showing how you reached the split.
“Just and reasonable” means fair in the circumstances. It does not mean that every property must receive the same share. The split should reflect a sensible basis, such as the relative value of each property.
Example
Amir buys both in one £300,000 package. The package covers a house and the neighbouring garage from the same seller. Two contracts record the purchase. Although the parties negotiated the price as one deal and both transactions complete on the same day, separate contracts cannot settle the question. They may be linked.
Assume both share one SDLT1 code. They have the same buyers and sellers and neither claims relief, so HMRC’s manual says Amir can use one SDLT1 with the appropriate supplementary form. He uses the appropriate supplementary form. He would enter £300,000 as the combined amount where the manual directs.
Now change one fact. The garage completes on a different effective date. Although the purchases can still be linked, HMRC says the different effective dates mean Amir must report them on separate SDLT1 forms. Use separate SDLT1 forms. Each form shows its own allocated price, while question 13 records the combined price of £300,000.
If Amir paid one package price, he must split the £300,000 fairly between the house and garage. He should keep the contracts, estate-agent details and a note explaining the figures used.
Why this can be difficult in practice
The link question causes the difficulty. The issue is whether the deals are linked at all. The deal’s history may provide evidence. That evidence can include emails, heads of terms, financing arrangements, family connections and records showing how the price was agreed. Details matter.
You might think separate sellers always settle it. They do not, if connected-person rules bring the parties together for this test. Equally, properties bought on the same day are not automatically linked just because they share a date.
- Separate contracts do not necessarily mean separate SDLT calculations.
- One purchase can be linked to another even if a connected person appears in the chain.
- Different dates prevent HMRC’s one-SDLT1 method, but do not necessarily prevent linkage.
- Different relief claims require separate SDLT1 forms under HMRC’s guidance.
- A round-number or equal split of a package price may not be fair.
- HMRC says you do not need a professional valuation solely for the split.
- That does not remove the need for a sensible method and supporting evidence.
- Lease cases need care because premiums and rent are reported differently.
If HMRC later asks about the returns, a clear written record is far more useful than trying to recreate the deal from memory.
Key takeaways
- Answer “Yes” in question 13 when a property deal is linked to another transaction.
- Use the total price of all linked deals, including VAT, where HMRC’s manual tells you to do so.
- Use one SDLT1 only when all of HMRC’s stated conditions are met.
- Split a single package price fairly and keep evidence of the method.
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 55 — calculates tax where property purchases are linked
- FA 2003 section 108 — defines linked transactions and permits single returns
- FA 2003 Schedule 4 para 4 — requires a fair split of a single price
- FA 2003 Schedule 5 para 2 — calculates tax on rent for linked leases
- an Act of 2010 we do not have an identifier for section 112 — defines connected persons for the linked transaction test (no link: an Act of 2010 we do not have an identifier for)
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
- Whether deals form one scheme, arrangement or series depends on the real facts, documents and commercial background.
- The right way to split one overall price can be unclear where the properties differ greatly or the contract gives no separate values.
- The appropriate SDLT rates and return process depend on the effective date and the type of transaction.
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.
- Contracts, completion statements and any agreement linking the purchases.
- The names and legal status of every buyer and seller.
- Completion dates for every linked transaction.
- Details of any relief claimed on each transaction.
- A written calculation showing how any combined price was split.
- Documents supporting the connection between parties, if relevant.
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 Linked property deals: how to complete SDLT1 question 13 [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 55 - calculates tax where property purchases are linked https://www.legislation.gov.uk/ukpga/2003/14/section/55/2025-11-17 - FA 2003 section 108 - defines linked transactions and permits single returns https://www.legislation.gov.uk/ukpga/2003/14/section/108/2025-11-17 - FA 2003 Schedule 4 para 4 - requires a fair split of a single price https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/4/2025-11-17 - FA 2003 Schedule 5 para 2 - calculates tax on rent for linked leases https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/2/2025-11-17 - an Act of 2010 we do not have an identifier for section 112 - defines connected persons for the linked transaction test HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm62080 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 - Whether deals form one scheme, arrangement or series depends on the real facts, documents and commercial background. - The right way to split one overall price can be unclear where the properties differ greatly or the contract gives no separate values. - The appropriate SDLT rates and return process depend on the effective date and the type of transaction. 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: Linked property deals: how to complete SDLT1 question 13
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