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When a failed institution is placed into resolution and a stabilisation power is exercised under the Banking Act 2009 (‘the Act�), section 66A Finance Act 2003 provides an exemption from Stamp Duty Land Tax (SDLT) on certain transfers of land effected under a property transfer order or a property transfer or resolution instrument, or a supplemental instrument made under such an instrument/ order, from the failed institution to the appointed resolution temporary holding entity, and on transfers of land to former creditors.

The SDLT exemption under FA86/S66A(1) does not apply to transfers in the following circumstances:

• A property transfer instrument or order, or resolution instrument which effectively transfers the business of the failed institution (which includes land) direct to a third party purchaser following exercise of a private sector purchaser resolution stabilisation power under section 11 of the Banking Act 2009. A charge to SDLT at the relevant rates will apply in the normal way.
• Under the terms of the resolution, the failed institution’s assets which includes land are onward transferred from a resolution temporary holding entity or temporary public body, to a third party purchaser. SDLT at the relevant rate will continue to apply.