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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Finder’s Fee

Example 5

I asked an estate agent to find a three bedroom house for me in London. I had some very particular requirements which I described in detail to the agent. The agent agreed to research the market and identify a suitable property or properties for a finder’s fee of £3,000.

The estate agent found me a house and my offer of £499,950 was accepted.

In this case the finder’s fee is charged under a separate contract with the agent and its payment is not linked to any particular purchase. The fee was given for the service of identifying a suitable property and payment was not a contractual condition of the actual purchase.

The chargeable consideration given for the property is the purchase price of £499,950.

The SDLT due on £499,950 = £14,997.

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 12497
Above 925,000 and up to 1,500,000 10  
Above 1,500,000+ 12  
  Total SDLT due 14997