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HMRC internal manual

Stamp Duty Land Tax Manual

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HM Revenue & Customs
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Scope: How much is chargeable: Non-cash consideration: Construction or similar works FA03/SCH4/PARA10: Example 1 and 2

Example 1

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.

Example 2

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.