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HMRC internal manual

Stamp Duty Land Tax Manual

Scope: How much is chargeable: Non-cash consideration: Meaning of market value FA03/S118

The Stamp Duty Land Tax (SDLT) definition of market value is at FA03/S118.

The definition relies on the definitions set out at TCGA92/S272, TCGA92/S273 and TCGA1992/S274.

Where the consideration for a land transaction is satisfied by the transfer of an asset, the market value of that asset will be the price which that asset might reasonably be expected to fetch on a sale in the open market.

Where the consideration for a land transaction is satisfied by the provision of services, the market value of those services will be the amount they might reasonably be expected to have cost if purchased on the open market.

There is guidance for Stamp Offices on establishing market values through liaison with HM Revenue & Customs own professional valuers at SDLTM80350.

The market value of an asset does not include Value Added Tax (VAT) even if VAT is chargeable on the transfer of the asset. This is because market value is based on a hypothetical transaction, not on the actual transaction.