Mobile Home & Park Home Stamp Duty
Mobile homes and park homes are usually exempt from stamp duty as movable property. Understand the licence vs lease distinction, SDLTM10023 rules, and when SDLT applies to park home sites.
In this article
Key Takeaways
- Mobile homes and park homes are exempt from SDLT as movable property — no stamp duty on the home itself
- The licence vs lease distinction is critical: licences (no exclusive possession) = no SDLT; leases = SDLT applies
- Most park home agreements are licences under the Mobile Homes Act 1983, so most park home purchases are SDLT-free
- Static caravans are treated identically to mobile homes — exempt from SDLT as movable chattels
- If you buy the land (pitch) as well as the home, the land element IS subject to SDLT at the appropriate rate
- HMRC guidance SDLTM10023 confirms mobile homes are outside the scope of SDLT as non-land assets
Key Result: Mobile Home Purchases Are Usually SDLT-Free
- •The home itself is movable property (a chattel) — not a land transaction
- •Most park home pitch agreements are licences under the Mobile Homes Act 1983
- •No SDLT return is required for purchase of the home under a licence pitch agreement
- •Only the land element (if any) is subject to SDLT
Why Mobile Homes Are SDLT Exempt
Stamp Duty Land Tax is charged on "land transactions" under the Finance Act 2003. A mobile home, park home, or residential caravan is classified as movable property — a chattel — not land. The purchase of the home itself is therefore outside the scope of SDLT entirely.
The key legal test is mobility: if the structure could physically be moved from its current location (even if it has not been moved in years), it remains movable property for SDLT purposes. HMRC applies this test consistently to mobile homes, park homes, static caravans, and residential caravans.
| Structure Type | SDLT on Structure? | Notes |
|---|---|---|
| Mobile home (wheeled) | Exempt | Movable chattel |
| Park home (residential) | Exempt | Movable chattel |
| Static caravan | Exempt | Movable chattel |
| Log cabin (bolted foundations) | May be liable | Depends on fixity to land |
| Permanent structure on land | Liable | Fixed to land = land transaction |
Licence vs Lease: The Critical Distinction
Even though the mobile home itself is SDLT-exempt, the pitch or site arrangement must be assessed separately. The critical question is whether the agreement for the pitch is a licence or a lease. This distinction is fundamental to SDLT analysis.
Licence (most common)
- • No exclusive possession of the pitch
- • Site operator can terminate or reassign
- • Personal right to occupy, not a property right
- • NOT a land transaction
- No SDLT
Lease (uncommon)
- • Exclusive possession of a defined pitch
- • Fixed term with rent
- • Transfers as a property right
- • IS a land transaction
- SDLT applies to the lease
Label vs legal reality
In residential property law, the label used by the parties ("licence" vs "lease") is not determinative. Courts look at the substance of the arrangement. If the document gives exclusive possession of a defined area for a term at a rent, it is a lease regardless of what it is called. Always have your solicitor confirm the legal nature of your pitch agreement before completing.
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 crucially, the agreements it regulates are licences, not leases. This means:
- The resident does not own the pitch (land)
- The agreement is a licence — no exclusive possession in the lease sense
- The pitch fees paid are not rent under a lease
- No SDLT arises from the pitch agreement under the Mobile Homes Act
When buying a second-hand park home, the transaction typically involves:
- Purchase of the park home (chattel) from the seller — no SDLT
- Assignment of the pitch licence to the buyer — no SDLT (licence, not lease)
- Approval by the site operator — required under the Mobile Homes Act
Practical comparison: park home vs house
£200,000 park home on licensed pitch:
SDLT = £0
£200,000 house (standard buyer):
SDLT = £1,500
The park home saves £1,500 in stamp duty on the same price point. At higher values the saving is proportionally greater.
Static Caravans
Static caravans — whether used as holiday homes or permanent residences — are treated identically to mobile homes for SDLT purposes. They are movable chattels, and their purchase is outside the scope of SDLT. This applies regardless of:
- Whether the caravan is connected to mains services
- Whether it has been in the same location for many years
- Whether it is used seasonally or year-round
- Whether it is a twin-unit (two caravans joined together)
Holiday park caravans
Static caravans on holiday parks are almost universally held under licence agreements. The park operator licenses the pitch, typically for a season or annual period. These licence agreements do not constitute leases and do not trigger SDLT.
Purchasing the caravan vs the site
Some holiday park developments sell the freehold of individual caravan pitches rather than offering licence agreements. If you purchase the freehold of a pitch, that is a land transaction subject to SDLT at non-residential rates (since the pitch itself is not a dwelling). The static caravan on the pitch remains SDLT-exempt. The apportioned land value forms the SDLT base.
When You Buy the Land Too
If your transaction includes ownership (freehold or long leasehold) of the land on which the mobile home sits, the land element is subject to SDLT. 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)
Example: Mobile home + land purchase
Total purchase price: £180,000
Apportioned to mobile home (chattel): £130,000
Apportioned to land plot (land transaction): £50,000
SDLT is calculated only on £50,000 (the land element):
Non-residential rates: 0% on first £150,000 = £0
Total SDLT: £0 (land value under £150k non-res threshold)
Example: Higher-value rural plot with mobile home
Total price: £400,000 (£300k land, £100k mobile home)
SDLT on land (non-residential rates):
0% on first £150,000 = £0
2% on next £100,000 (£150k–£250k) = £2,000
5% on next £50,000 (£250k–£300k) = £2,500
Total SDLT: £4,500 (on the land only)
HMRC Guidance (SDLTM10023)
HMRC's Stamp Duty Land Tax Manual at reference SDLTM10023 covers movable structures including mobile homes. The guidance confirms that mobile homes and similar structures that can be moved are not land and are therefore outside the scope of SDLT.
Key HMRC principle: mobility test
A structure is movable (and therefore exempt from SDLT as a chattel) if it could physically be moved from its current location — even if it has not actually been moved and even if moving it would be impractical or expensive. The potential for movement is sufficient.
Apportionment of mixed transactions
Where a single transaction includes both movable property (mobile home) and land (pitch freehold or long lease), HMRC requires the total consideration to be apportioned on a just and reasonable basis. Only the land portion is subject to SDLT. HMRC expects professional valuations to support the apportionment.
Not a dwelling for surcharge purposes
A mobile home is not a "dwelling" for the purposes of the additional property surcharge under Schedule 4ZA FA2003. Owning a mobile home does not count as owning residential property for the surcharge test. This means buying a house while you own only a mobile home does not trigger the 5% surcharge.
Compare with our houseboat stamp duty guide, which covers SDLTM10023 in the context of floating vessels. The same principles apply to both mobile homes and houseboats as movable property. See also our property types hub for other residential and non-residential SDLT scenarios.
Common Questions
Do I pay stamp duty on a mobile home?
Usually no. Mobile homes are classified as movable property (chattels), not land, so they are exempt from SDLT. The key test is whether the site operator could move the home — if so, it is movable property. Only the pitch agreement matters for SDLT purposes, and most pitch agreements are licences with no SDLT liability.
What is the difference between a licence and a lease for park homes?
A licence gives permission to occupy without exclusive possession — no SDLT. A lease grants exclusive possession of a specific pitch for a term with rent — this IS a land transaction subject to SDLT. Most park home agreements are licences under the Mobile Homes Act 1983.
Is a static caravan subject to stamp duty?
No. Static caravans, like mobile homes, are movable property exempt from SDLT. The caravan itself is not a land transaction. However, if you purchase the land the caravan sits on, that land purchase is subject to SDLT at the appropriate non-residential rate.
Can buying a mobile home save on stamp duty?
Yes, because the home itself is SDLT-exempt. You only pay SDLT on any land element. For comparison, a £200,000 bricks-and-mortar house incurs £1,500 in SDLT, while a £200,000 mobile home on a licensed pitch incurs £0. Use our stamp duty calculator to compare scenarios.
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Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.