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HMRC internal manual

Stamp Duty Land Tax Manual

Procedure: Deferring payment in case of contingent or uncertain consideration FA03/S90: Special rules for carrying out of works and provision of services

There are special rules covering deferred payments where the consideration consists of the carrying out of works by virtue of FA03/SCH4/PARA10 or provision of services by virtue of FA03/SCH4/PARA11. See SDLTM04060.

If the works or services are expected to take less than six months to complete the applicant must pay the Stamp Duty Land Tax (SDLT) in respect of that part of the consideration no later than 30 days after the works or services are complete.

If the works etc are expected to take longer, the application must set out payment dates and intervals of not less than six months with a final payment to be made 30 days after the works etc are/have been completed.

Payment will be based on the value of the works or services carried out at each stage.

Towards the end of a period of works and services the purchaser may apply to HM Revenue & Customs for the payment schedule to be varied. This is to cover the situation where the works etc are almost completed but a six-monthly payment is due.

The application should be made in writing to the Stamp Office, quoting the full reference to the address here.

For example, a six-monthly payment is due on 1 January 2013.

But the purchaser is aware that the works will be finished by 6 January 2013.

Rather than making one payment up to 1 January then another for the short period to 6 January the purchaser may apply to HM Revenue & Customs to make a single payment 30 days after the works are complete to take into account all of the remaining consideration.

From 1 March 2019, in cases where the transaction becomes notifiable for the first time, the return and any tax due will be required within 14 days afer the works or services are complete.