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HMRC internal manual

Stamp Duty Land Tax Manual

Sale by Tender Fees

Example 3

A bungalow was advertised for sale. I arranged to view the property with the estate agent. Interested parties were invited to submit sealed bids for the bungalow. My bid of £350,000 was the winning bid. I was told that my purchase of the property was conditional on paying the estate agent a tender fee of £5,000 (including VAT). I agreed to this condition.

The chargeable consideration given for the property is £355,000 (purchase price plus sale by tender fee).

The SDLT due on £355,000 = £7,750.

Here is a breakdown of how the SDLT was calculated:

Purchase Price Bands (£) Percentage rate SDLT due (£)
Up to 125,000    
Above 125,000 and up to 250,000 2 2500
Above 250,000 and up to 925,000 5 5250
Above 925,000 and up to 1,500,000 10  
Above 1,500,000+ 12