Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Stamp Duty Land Tax Manual

Scope: What is chargeable: Transfer of rights: Charge on the ultimate purchaser FA03/S45

Where a purchaser (B) transfers his rights under a contract for a land transaction (the ‘original contract’) to a third party (C)

  • there is for Stamp Duty Land Tax (SDLT) purposes a contract for a land transaction (the ‘secondary contract’) in respect of which (C) is the purchaser
  • the chargeable consideration for the land transaction is

    • so much of the consideration under the original contract as relates to the transfer of rights and is to be given directly or indirectly by (C) (or someone connected with him) and
    • the consideration given for the transfer of rights

This is illustrated by example 1 at SDLTM01090.

Note, however, that where the chargeable consideration for the land transaction provided for by the secondary contract would otherwise be less than that under the original contract there will normally be a ‘notional transaction’ within the meaning of FA03/S75A, the chargeable consideration for which will be at least that under the original contract.