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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Scope: How much is chargeable: Contingent, uncertain or unascertained consideration: Adjustments under FA03/S80: General: Example

P Ltd exchanges contracts with V Ltd to buy a plot of land for £10m with an additional £5m payable contingent on P Ltd being successful in obtaining planning permission to build an industrial park on the land within the next 5 years.

The chargeable consideration for stamp duty land tax is £15m.

P Ltd does not make an application to defer payment of tax under FA03/S90, see SDLTM50900, and pays stamp duty land tax on the £15m total contingent purchase price.

In the event 5 years passes but P Ltd is unsuccessful in the planning application so the £5m is not payable.

At the end of 5 years P Ltd can make a claim for repayment of stamp duty land tax on £5m.

Interest would be payable on this £5m.