"The government’s challenge is clear: they need revenue from SDLT, but the current system is blocking the very transactions that would produce it"
- Sean Swimby - SCA Tax
SCA Tax is urging the government to adopt a wider and more modernised Stamp Duty Land Tax (SDLT) relief framework, arguing that a refreshed structure could stimulate transactions, support landlords and companies, and increase total SDLT receipts through higher market activity.
The firm, which advises limited companies, landlords and property professionals, says the current SDLT model discourages movement by placing substantial upfront costs on buyers. According to SCA Tax, this is especially burdensome for companies and portfolio landlords who often contribute a significant proportion of overall market liquidity. The business is proposing a relief-focused system intended to reduce friction at the point of purchase, encourage both acquisitions and disposals, and raise overall revenue through greater transaction volume rather than restrictive charges.
Key policy proposals
1. Broader reliefs for companies and landlords
SCA Tax is calling for an expanded suite of reliefs aimed at stimulating activity in the buy-to-let and corporate sectors. Its suggested measures include:
• A revitalised Multiple Dwellings Relief (MDR+), which would reintroduce MDR in a clearer and updated format to help companies and landlords invest efficiently in multi-unit properties.
• A new Portfolio Growth Relief, offering reduced SDLT rates for organisations increasing housing supply, such as through the purchase of vacant, dilapidated or converted units.
• A Condition & Upgrade Relief, lowering SDLT for properties requiring refurbishment or EPC improvements, provided that remedial works are completed within a defined timeframe.
• Clearer statutory rules for incorporation relief to address uncertainty over SDLT liabilities during company incorporation.
SCA Tax argues that these proposals would strengthen participation across the sector while improving the quality of housing stock, without complicating the process for typical home movers.
2. Lighter SDLT burdens to drive more transactions and higher revenue
The firm advocates reducing SDLT on individual transactions to unlock greater activity across the housing market. Its approach rests on a sequence: lower tax per purchase leading to increased transactions, resulting in higher overall SDLT revenue. Because SDLT affects behaviour immediately when rates change, the business claims that even small reductions for landlords and companies could lead to thousands of additional purchases each year.
3. Targeted updates for main residence buyers
SCA Tax suggests keeping SDLT in place for primary homes but modernising its structure. Proposed updates include replacing large tiered SDLT amounts for main residences with a modest mobility charge, retaining higher surcharges for second homes and investors, and offering temporary reliefs for downsizers returning family homes to the market. These measures are intended to maintain fairness while ensuring that SDLT continues to generate revenue.
4. Keep necessary complexity while simplifying where it offers clear value
Although many commentators call for a simplified SDLT regime, SCA Tax supports preserving several technical components. It favours retaining reliefs and maintaining complex rules for company and partnership transactions. The firm also supports keeping detailed legislation relating to mixed-use property, FA03 Sch 15, Sch 6A and sub-sale reliefs. According to SCA Tax, these rules fulfil important economic purposes and ensure that buyers seek appropriate specialist advice, supporting both compliance and revenue collection.
A revenue-focused plan for government
Commenting on the recommendations, Sean Swimby, director at SCA Tax, said, “The government’s challenge is clear: they need revenue from SDLT, but the current system is blocking the very transactions that would produce it. A relief-led approach is the most effective way to increase activity and total receipts while supporting landlords, companies and the broader housing market.”
He added: “This is not about removing SDLT; it’s about modernising it. By expanding and refining reliefs, particularly for landlords and limited companies, the government can stimulate investment, improve housing supply, and increase revenue, all without exposing households to long-term debt or complex financing schemes.”
