LBTT3038 - Relief for certain acquisitions by Local Authorities including compulsory purchase

Relief from LBTT and associated ADS for certain acquisitions by Local Authorities. This relief is available for a land transaction where the buyer is a Local Authority.

The following schedules provide for the relief:

Schedule 6A LBTT(S)A 2013 with effect from 1 April 2024.

schedule 14  LBTT(S)A 2013

Description of relief

Schedule 6A Relief for certain acquisitions by Local Authorities
Relief is available on a land transaction where the buyer, a Local Authority meets the qualifying condition, with effect from 1 April 2024.

Qualifying relief condition:


Schedule 14 Relief for certain compulsory purchases

Separate conditions apply to compulsory purchase orders.

Compulsory purchase orders allow the purchase of property this may be with or without agreement. Where the purchase is for development by another party. The other party is usually a developer. 

As there are two transactions, in the absence of the relief, there would be two amounts of LBTT to pay. However, relief from LBTT may be due for the first transaction.
Relief conditions:


  • any other purpose needed which is in the interests of the proper planning of an area of land
  • the developer must be a third party

Note: If the developer is the local authority, the relief is not available.

Claiming the reliefs

Relief can only be claimed per LBTT(S)A 2013, Part 3, 27(2) by:

  • including a claim for relief in the original LBTT return
  • making an amendment to the LBTT return within the amendment period 

For guidance on how to claim this relief see:

'How to make a LBTT return and pay tax

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