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HMRC internal manual

Stamp Duty Land Tax Manual

Scope: how much is chargeable: non-cash consideration: construction or similar works FA03/SCH4/PARA10

The whole or part of the consideration for a land transaction may involve a purchaser carrying out works of construction, improvement or repair of a building or other structure.

Such works do not comprise chargeable consideration if

  • the works are carried out after the effective date on which the land is acquired or to be acquired by the purchaser under the transaction and
  • the works are to be carried out on any other land held by the purchaser or a person connected with him and
  • it is not a condition of the transaction that the vendor carries them out on the purchaser’s behalf

In all other cases works carried out represent consideration calculated on the basis of their open market value.

In situations where notification by SDLT1 is required both at substantial performance and upon completion by virtue of FA03/S44(8) then if condition one is met at first notification then it is taken as met for the second notification as well by virtue of FA03/SCH4/PARA10(2A).

See SDLTM04140 for guidance on how open market value is to be calculated.

See examples at SDLTM04060a SDLTM04060b and SDLTM04060c.