Stamp duty land tax - Relief for qualifying housing co-operatives

The measure

The government will introduce a new relief from the charge to annual tax on enveloped dwellings (ATED) and the flat 15% residential rate of SDLT for qualifying housing co-operatives. This measure is intended to make the taxation of housing co-operatives fairer. The Budget document provides that this will apply to purchases of dwellings over £500,000 in line with the current ATED and 15% rules. 


Who will be affected?

Qualifying housing co-operatives. Full details are not yet available, but this may relieve membership-based entities with memberships granted by way of a share purchase in the co-operative where each shareholder is granted the right to occupy a housing unit.


When will the measure come into effect?

The SDLT relief in England and Northern Ireland will take effect from Autumn Budget 2020 and the UK-wide ATED relief from 1 April 2021 with a refund available for 2020/21. 

Our view

This will be a welcome change in order to make the taxation of housing co-operatives fairer by creating new reliefs for non-registered provider housing co-operatives.