Commencement and transitional provisions
Contracts entered into before 10 July 2003
There are special provisions for land transactions effected in pursuance of a contractentered into on or before the date of Royal Assent of FA03, 10 July 2003.
If such a contract was substantially performed, see SDLTM07700,on or before 10 July 2003 then the land transaction is not a stamp duty land taxtransaction by virtue of FA03/SCH19/PARA4(2). See example 1 SDLTM49300a.
If the contract was not substantially performed on or before 10 July 2003 then the landtransaction is not a stamp duty land tax transaction unless
- there is any variation of the contract or assignment of rights under the contract after 10 July 2003
- the transaction is effected in consequence of the exercise after 10 July 2003 of any option, right of pre-emption or similar right
- after 10 July 2003 there is an assignment, sub-sale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance to him by virtue of FA03/SCH19/PARA3. See example 2 SDLTM49300b
A variation under (a) would include a change to
- the subject matter of the contract, or
- to the parties, or to the contractual consideration, or
- in an agreement for a lease to the term length.
On the other hand some changes, for example, to prescribed colour schemes or tocontractual completion date, may be too insignificant to amount to a variation.
The reference to assignment of rights in FA03/SCH19/PARA3(3)(a) refers only to assignmentsby the purchaser under the contract.
This is consistent with the fact that FA03/SCH19/PARA3(3)(c), as amended byFA04/SCH39/PARA12, refers only to a change of purchaser.
Thus a contract remains protected if the only change is a change in the contractingvendor.