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HMRC internal manual

Stamp Duty Land Tax Manual

Processing: Further guidance for completing forms SDLT1, SDLT3 and SDLT4: Further guidance for question 4 SDLT1, effective date of transaction

This is question 4 on the paper SDLT1. It will be described as 1.4 if the option to show the question number has been selected on the HMRC online system or software from your IT supplier.

The date must be shown in the format dd/mm/yyyy. If the day or month has a value less than 10 enter 0 and then the single digit.

A contract may be ‘substantially performed’ before completion. Substantial performance occurs if:

  • the purchaser, or a person connected with the purchaser, take possession of the whole, or substantially the whole, of the subject matter of the contract
  • a substantial amount of the consideration (for an agreement for lease, consideration other than rent) is paid
  • the first payment of rent is made.

HMRC regard 90% or more as ‘substantial’.

In such circumstances the earlier date of substantial performance is the effective date that you must enter. You may also have an obligation to notify us once completion occurs.

Please note that you must not post date this entry.

Further information on substantial performance can be found at SDLTM07700.