Q&As

Does an amendment to an overage provision in 2016 (that changed the trigger point and overage period but not the overage amount) attract a stamp duty land tax (SDLT) liability where the overage was originally granted pre-SDLT (ie before 1 December 2003)?

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Produced in partnership with Sean Randall of Blick Rothenberg
Published on LexisPSL on 09/10/2019

The following Tax Q&A produced in partnership with Sean Randall of Blick Rothenberg provides comprehensive and up to date legal information covering:

  • Does an amendment to an overage provision in 2016 (that changed the trigger point and overage period but not the overage amount) attract a stamp duty land tax (SDLT) liability where the overage was originally granted pre-SDLT (ie before 1 December 2003)?

An overage is a payment made by the purchaser after completion of a land transaction and is usually a percentage of the increase in the value of the purchased land due to planning permission or a percentage of the sale proceeds in excess of the purchase price realised on re-selling the property.

The fact that the overage was granted pre-stamp duty land tax (SDLT), presumably means, that the completion of the land sale was also pre-SDLT. If that is correct, the question is whether the amendment to the operative clause in the original agreement for the land sale constitutes a fresh SDLT transaction. The amendment cannot cause the completion of the sale to switch from a stamp duty transaction to an SDLT transaction. The overage would have attracted stamp duty or not depending on the stamp duty rules for contingent and unascertainable con

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