SDLTM29960 - Relief for transfers involving multiple dwellings: "off plan" transactions FA03/SCH6B/PARA7(5)-(6)

Where:

• there is a contract to purchase a building, or part of a building, which is to be constructed or adapted under the contract for use as a dwelling or dwellings,
• the contract is substantially performed before construction of the building, or part of the building, concerned has commenced and
• the effective date of the transaction is deemed to be the date of substantial performance by virtue of FA03/S44/44A/45/45A or FA03/SCH17A/PARA12A or 19(3)

then, for the purposes of the relief, the main subject-matter of the transaction will be taken to consist of or include an interest in a dwelling.

For this purpose a contract includes any agreement including, not constituting a lease.

This is distinct from the scenario where a plot of land is purchased - possibly with planning permission for a dwelling - and with the intention to construct a dwelling, but no obligation to construct a dwelling exists.