If a property trader purchases a property from the Executors or Personal Representatives of a deceased individual, it may be exempt from Stamp Duty, subject to the following conditions:

A) The acquisition must be part of a business that involves acquiring dwellings primarily for purposes other than investment. The main business activity of the company should revolve around trading properties.

B) The deceased individual must have occupied the dwelling as their main or only residence within the last two years of their life.

C) The property trader must not have the intention to:

• Spend an amount exceeding the Permitted Amount on refurbishing the dwelling.
• Grant a lease or license of the dwelling.
• Allow any of its directors, employees, or any person connected with its principals or employees to occupy the dwelling.

D) The area of land acquired, including the dwelling, must not exceed the Permitted Area.

Condition A depends on the nature of the buyer, with their main business activity centred around purchasing properties for refurbishment and subsequent sale.

For condition B, it is the responsibility of the buyer to ensure that the deceased individual used the property as their main or sole residence during the specified period. This determination is based on the specific circumstances of each purchase.

For condition C, The Permitted Amount allowed for refurbishments is either £10,000 or 5% of the acquisition price, whichever is greater, with a maximum cap of £20,000. Refurbishment activities involve improving or enhancing the value of the property but do not include cleaning or work necessary to meet minimum safety standards.

For condition D, the Permitted Area refers to the size of land acquired, including the dwelling and its site. It is typically half a hectare or a larger area necessary for the reasonable enjoyment of the dwelling, considering its size and character. If the acquired property exceeds the Permitted Area, partial relief may still be claimed as long as the other conditions are satisfied.

This relief was introduced as an amendment to the Finance Act 2003, specifically through the insertion of a new Schedule 6A, with sub-paragraph (3), to enhance flexibility in the housing market.