Mobile Home & Park Home Stamp Duty

Is a Mobile Home Part of the Land?

Stamp Duty Land Tax is charged on "land transactions" under the Finance Act 2003. HMRC's manual says SDLT legislation makes no specific provision for mobile homes. Their treatment, and the treatment of the land they stand on, depends on the nature of the interest involved, which is a matter of general land law. The home and the land may need to be treated separately.

Where you are buying or leasing the land, the question is whether the home forms part of it. HMRC says this depends first on the use and purposes for which the home was put there, and second on the degree of annexation to the land. These are matters of fact in each case. HMRC's manual states:

The Courts have held that, if the object is in the nature of a dwelling, it is likely that it has been erected with a view to the enjoyment of the property as a whole and therefore constitutes part of the land. This is likely to be the case even if the object itself is in kit form and could be dismantled and re-erected elsewhere, or if it is not actually affixed to the land but rests on its foundations under its own weight.

By contrast, HMRC says a caravan that can be readily moved from place to place without requiring demolition or damaging the fabric of the land may be sited for the enjoyment of the caravan rather than the land. In that case it may be movable property (a chattel), separate from the land. Being connected to mains services does not necessarily stop it being movable, provided the connections can be readily disconnected to allow removal.

Licence vs Lease: The Critical Distinction

The first practical question is what interest you acquire in the pitch. HMRC says an interest in a pitch for a caravan or mobile home may be a mere licence to occupy land, which is not a chargeable interest for SDLT. In that case the nature of the structure on the land is irrelevant. If you acquire the freehold or a lease instead, its grant or assignment is chargeable, and the home may be part of what you are buying.

Park Homes and the Mobile Homes Act 1983

Park homes are residential mobile homes sited on licensed residential parks and governed by the Mobile Homes Act 1983 (as amended). The Act provides substantial security of tenure for park home residents, but it does not settle the SDLT position on its own. HMRC says the nature of the interest depends on the details of the agreement with the site operator, and that even where there is a longer fixed term, exclusive possession is the main factor in deciding whether it is a lease or a licence. Where your pitch agreement is a licence:

• The resident does not own the pitch (land)
• The agreement gives no exclusive possession in the lease sense
• The pitch fees paid are not rent under a lease
• No SDLT arises, and the nature of the home itself is irrelevant

When buying a second-hand park home on a licensed pitch, the transaction typically involves:

1. Purchase of the park home from the seller, with no SDLT because the pitch is held under a licence
2. Assignment of the pitch licence to the buyer, with no SDLT (licence, not lease)
3. Notice to the site operator, not approval. In England, the Mobile Homes Act 2013 removed the need for the operator's approval. If the seller's agreement was made or assigned after that change, you tell the operator once the sale completes. For an older agreement, the seller serves a notice of proposed sale and the operator has 21 days to apply to a tribunal to stop it, on limited grounds. Wales has a similar process under the Mobile Homes (Wales) Act 2013. Scotland and Northern Ireland have their own rules.

Static Caravans

Static caravans, whether used as holiday homes or permanent residences, are assessed under the same test. If the pitch is held under a licence, the caravan's status does not matter, because the licence is not a chargeable interest. If you buy or lease the land, a static caravan that can be readily moved without demolition or damage to the land may be movable property (a chattel), separate from the land. It is a question of fact, and the points HMRC looks at are:

• The use and purpose for which the caravan was put on the site
• The degree to which it is attached to the land
• Whether it can be moved without demolition or damage to the land
• Whether any mains connections can be readily disconnected to allow removal

Holiday park caravans

Static caravans on holiday parks are usually held under licence agreements. The park operator licenses the pitch, typically for a season or annual period. HMRC notes that caravan site agreements are usually renewed annually, and that exclusive possession is the main factor in deciding whether one is a lease or a licence. Where the agreement is a licence, it does not trigger SDLT.

When You Buy the Land Too

If your transaction includes ownership (freehold or long leasehold) of the land on which the mobile home sits, SDLT applies to the land. The key question is then whether the home is part of that land. HMRC says a home in the nature of a dwelling is likely to be, even if it simply rests on its foundations under its own weight, and in that case its price counts for SDLT as well. This arises most commonly when:

• Buying a mobile home on a private rural plot (purchasing the land freehold)
• Acquiring a holiday park pitch as a long leasehold interest
• Purchasing a park home site (the entire park with its land)

The two examples below assume the home is movable property (a chattel), so the price is split and only the land share counts. If the home is in the nature of a dwelling and forms part of the land, the whole price is likely to count for SDLT and the rates may differ, so take advice before relying on a split.

HMRC Guidance (SDLTM10023)

HMRC's Stamp Duty Land Tax Manual at reference SDLTM10023 covers mobile homes, caravans and houseboats. It does not say mobile homes are automatically outside SDLT. It says SDLT legislation makes no specific provision for them, and that their treatment depends on the nature of the interest, which is a matter of general land law.

Compare with our houseboat stamp duty guide, which covers the houseboat part of SDLTM10023. For boats, HMRC's test is whether the boat can be easily disconnected and removed from its mooring without damaging the land. See also our property types hub for other residential and non-residential SDLT scenarios.

Common Questions