Finance Act 2003, section 85

Liability for tax

Part 4 Stamp duty land tax

(1)The purchaser is liable to pay the tax in respect of a chargeable transaction.

(2)As to the liability of purchasers acting jointly see—

  • section 103(2)(c) (joint purchasers);

  • Part 2 of Schedule 15 (partners); and

  • paragraph 5 of Schedule 16 (trustees).

[F349 (2A)Where relief is withdrawn to any extent under paragraph 5L of Schedule 4A (qualifying housing co-operatives) in a case to which paragraph 5L(4) or (7) applies—

(a)subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and

(b)the relevant successor is liable to pay that additional tax.

(2B) In subsection (2A) “the relevant successor” has the same meaning as it has in subsections (1C) , (1D) and (3)(e) of section 81 (see subsections (6) and (7) of that section). F349]

[F350 (3)Where relief given in respect of a transaction entered into under alternative finance arrangements is withdrawn to any extent under any of paragraphs 6D, 6F, 6G [F351 , 6H and 6IF351] of Schedule 4A (higher rate: alternative finance arrangements) [F352 or under Part 3 of Schedule 6C (relief for [F353 special tax sitesF353] ) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) appliesF352] —

(a)subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and

(b)the relevant person is liable to pay that additional tax.

(4) In subsection (3) “the relevant person” [F354 has the same meaning as in section 81ZA (see subsections (6) and (7) of that section) F354] . F350]

Definitions used in section 85 6

purchaser

(4) References in this Part to the “purchaser” and “vendor”, in relation to a land transaction, are to the person acquiring and the person disposing of the subject-matter of the transaction.

Defined in s.43(4) · see it in the full Act
tax

“tax”, unless the context otherwise requires, means tax under this Part.

Defined in s.121 · see it in the full Act
trustee

(6) In sub-paragraph (5) “trustee” is to be read in accordance with section 1123(3) of CTA 2010 (“connected” persons: supplementary).

Defined in Sch.7A para.19(6) · see it in the full Act

(6) In sub-paragraph (5) “trustee” is to be read in accordance with section 1123(3) of CTA 2010 (“connected” persons: supplementary).

Defined in Sch.7A para.9(6) · see it in the full Act

(8) In sub-paragraph (7) “trustee” is to be read in accordance with section 1123(3) of CTA 2010 (“connected persons”: supplementary).

Defined in Sch.4A para.5A(8) · see it in the full Act
the relevant successor

(6) In subsections (1C) , (1D) and (3)(e) (which relate to the withdrawal of relief under paragraph 5L of Schedule 4A) “the relevant successor” means the person who is the most recent successor in the chain of succession at the time relief is withdrawn (and that person could be the first successor, the second successor or a subsequent successor).

Defined in s.81(6) · see it in the full Act
arrangements

40 In this Part of this Schedule “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.

Defined in Sch.15 para.40 · see it in the full Act
special tax site

(6) In this section and Schedule 6C, “special tax site” means an area for the time being designated under section 113 of the Finance Act 2021 .

Defined in s.61A(6) · see it in the full Act

Cases considering section 85 3

The Tower One St George Wharf Limited v The Commissioners for HMRC

[2025] EWCA Civ 1588 · 10 December 2025Defines

The provision states that the purchaser is liable to pay SDLT. It supported the interpretation of payable as liable to pay in section 75A(1)(c). (see para [105])

Project Blue Ltd v Revenue and Customs

[2016] EWCA Civ 485 · 26 May 2016Interprets

The Court used section 85(1) as an example of statutory language in which liable to pay means legally chargeable, rather than merely subject to an administrative demand. (see para [52])

BTR Core Fund JPUT v The Commissioners for HMRC

[2026] UKUT 27 (TCC) · 21 January 2026

Identifies the purchaser as the person liable to pay SDLT. BTR was therefore the person liable on the transaction (see paras [14], [58](2)).

What each judgment says about section 85 is in the case-law panel in the full Act.

Amendments and notes

7 notes from legislation.gov.uk

Amendments

  1. F349S. 85(2A)(2B) inserted (with effect in accordance with s. 89(4) of the amending Act) by Finance Act 2021 (c. 26), Sch. 17 para. 4(2)
  2. F350S. 85(3)(4) inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 5
  3. F351Words in s. 85(3) substituted (with effect in accordance with s. 89(4) of the amending Act) by Finance Act 2021 (c. 26), Sch. 17 para. 4(3)
  4. F352Words in s. 85(3) inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 23 para. 5
  5. F353Words in s. 85(3) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 5
  6. F354Words in s. 85(4) substituted (with effect in accordance with s. 89(4) of the amending Act) by Finance Act 2021 (c. 26), Sch. 17 para. 4(4)

Commencement

  1. I54Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)