This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Stamp Duty Land Tax Manual

Procedure: deferring payment in case of contingent or uncertain consideration FA03/S90: when application may be made

An application to defer the stamp duty land tax payable on a transaction under FA03/S90 may be made by the purchaser where the whole or part of the chargeable consideration

  • is contingent or uncertain as defined in FA03/S51. SeeSDLTM05010 
  • becomes payable or may become payable more than six months after the effective date of the transaction

The application must be sent to the Stamp Office before the due filing date for the land transaction return. See SDLTM50910.

An application under this section does not affect the purchaser’s obligation to pay Stamp Duty Land Tax (SDLT) on any consideration that

  • has already been paid when the application is made
  • will become payable within six months of the effective date of the transaction
  • is not contingent
  • is known at the time the application is made

An example of when application may be made to defer payment can be found at SDLTM50900a.

Deferral can apply to consideration which is payable before six months if there is any part of the uncertain or contingent consideration payable after six months.

Deferral is not available for consideration that is uncertain because the amount is ascertainable but not yet ascertained. This is because in order for the return to be within FA03/S51 the amount has to depend on uncertain future events by virtue of FA03/S51(3). See SDLTM05010.

In this type of case the land transaction return should be completed on the basis of a best estimate of the purchase price which will be payable.

When the final consideration is known a purchaser amendment under FA03/SCH10/PARA6 should be made.

A payment on account may be made if the purchaser considers interest may accrue on any SDLT outstanding.