Scope: How much is chargeable: Non-cash consideration: Construction or similar works FA03/SCH4/PARA10: Example 1 and 2
P Ltd, a construction company, enters into a contract to acquire a plot of land from V Ltd on 1 July 2004.
Under the terms of the contract, P Ltd is to pay £1m and to build a new workshop for V Ltd on a plot of land owned by V Ltd in a nearby town.
The cost of constructing the workshop is £750,000.
The chargeable consideration for Stamp Duty Land Tax (SDLT) is £1,750,000.
P Ltd, a construction company, enters into a contract to acquire a plot of land from a County Council on 1 July 2004 for a purchase price of £5M.
As a condition of the sale P Ltd must construct a leisure centre for the Council on part of the land after completion. The value of the works is £1M.
The chargeable consideration for SDLT is £5M.