Find out if you can claim relief from Stamp Duty Land Tax when buying land or buildings in a Freeport tax site in England.
You may be able to claim relief from Stamp Duty Land Tax (SDLT) if you’re buying land or buildings in a Freeport tax site in England.
If you’re buying land or buildings in a Freeport tax site in:
- Scotland ― the Scottish Government plan to offer Land and Building Transaction Tax (LBTT) relief, subject to legislation agreement
- Wales ― the Welsh Government plan to offer Land Transaction Tax (LTT) relief, subject to legislation agreement
You can read more about:
- Land and Building Transaction Tax on the Scottish Government website
- Land Transaction Tax on the Welsh Government website
A Freeport tax site is an area of land where businesses can claim certain tax reliefs. They’re independent and separately authorised from Freeport customs sites, but they can cover the same area of land.
Find out more about operating Freeport tax sites in England.
You can claim relief from Stamp Duty Land Tax when buying any land or buildings in a designated Freeport tax site, if the land or buildings will be used in a qualifying way.
You can also claim Stamp Duty Land Tax relief if you buy a lease for the land or buildings, or for any rental payments for the lease.
The relief can be claimed from the date a Freeport tax site is designated until on or before 30 September 2026.
Check which sites are designated Freeport tax sites.
How to qualify
You can claim the relief if you intend to use the land or buildings in a qualifying way.
Qualifying ways are:
- in a commercial trade or profession
- for development or redevelopment for resale
- letting the land or buildings to another person who pays you rent — as long as they are not used as residential property
When you cannot claim the relief
You cannot claim relief for land or buildings which are:
- purchased inside a Freeport tax site before it’s designated or after 30 September 2026
- to be used as residential property
- to be developed or redeveloped to become residential property
- to be held as stock of the business to be resold without having been developed or redeveloped
How much relief you can claim
You can claim full relief from Stamp Duty Land Tax on the total purchase price if at least 90% of the purchase price is for qualifying land or buildings.
If less than 90% of the purchase price is for qualifying land or buildings, you can claim relief on the portion of the Stamp Duty Land Tax for the land or buildings which qualify, so long as the price for the qualifying land or buildings is 10% or more of the total price.
You cannot claim any relief if less than 10% of the total purchase price is for qualifying land or buildings.
How to claim relief
To claim the relief you must complete and submit a land transaction return within 14 days of the transaction. Find out how to complete your land transaction return.
All claims must be made on or before 14 October 2027.
Withdrawal of the relief
There is a control period of 3 years after the date of the purchase.
During the control period you must use the land or buildings in a qualifying way.
If at any time in the control period the land or buildings are not being used in a qualifying way you must be taking reasonable steps to:
- start using the land or buildings in a qualifying way
- sell the land or buildings
If neither of these steps are being taken the relief is withdrawn and you must make a further Stamp Duty Land Tax return and pay the tax within 30 days.
Find more information in the Stamp Duty Land Tax Manual.
Examples of relief calculations
Example 1
£800,000 is paid for land wholly within a Freeport tax site but £200,000 (25%) of the amount paid relates to land that is not intended to be used in a qualifying way.
£600,000 (75%) is paid for Freeport land that is to be used in a qualifying way. The Stamp Duty Land Tax is reduced by 75% of the total tax due for the whole purchase.
Example 2
£2 million is paid for land partly within and partly outside a Freeport tax site.
All the land situated within the Freeport tax site is to be used in a qualifying way.
£400,000 (20%) of the amount paid is for land outside the Freeport tax site.
£1.6 million (80%) is paid for Freeport land that is to be used in a qualifying way. The Stamp Duty Land Tax is reduced by 80% of the total tax due for the whole purchase.
Example 3
£5 million is paid for land partly within and partly outside a Freeport tax site.
£500,000 is for land outside the Freeport tax site.
£4.5 million is for land inside the Freeport tax site.
Only £400,000 is for land which is intended be used in a qualifying way.
As £400,000 is less than 10% of the total £5 million price paid, no relief from Stamp Duty Land Tax can be claimed.
