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HMRC internal manual

Stamp Duty Land Tax Manual

Scope: What is chargeable: Land transactions: Notifiable transactions FA03/S77: examples

Example 1

The purchase of a residential property for £50,000.

As the chargeable consideration does not exceed £125,000 Stamp Duty Land Tax is chargeable at the 0% rate.

Although no tax is payable the obligation to notify the transaction to HM Revenue & Customs on form SDLT1 remains as the consideration is not less than £40,000.

Example 2

The purchase of a property for £1 where FA03/S53 won’t apply (see SDLTM30220).

No tax is payable and the transaction is not notifiable because of the exemption in FA03/S77(3)(b) for transactions under £40,000.

Example 3

A lease for 999 years is granted for no premium and a peppercorn rent.

The transaction is not notifiable as there is no chargeable consideration.

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Example 4

A lease for 999 years is granted for no premium and a £5 annual rent.

As the chargeable consideration is less than £40,000 notification is not required.