Q&As

Does a deposit qualify as 'substantial performance' for SDLT?

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Published by a LexisNexis Tax expert
Published on: 28 November 2013

Is paying a deposit 'substantial performance' for SDLT purposes?

Stamp duty land tax (SDLT) is charged on the acquisition of interests in UK land. SDLT is payable by the purchaser of the interest in land in relation to any notifiable land transactions.

SDLT is charged as a percentage of the total amount paid in respect of a land transaction. In the case of leases, this includes any premium (usually a lump sum payment on the grant of a lease) and any rent.

The purchaser must: (i) notify HMRC about notifiable land transactions and (ii) pay any applicable SDLT within 30 days after the effective date of the land transaction in question. The effective date for most land transactions will be the date of completion. A person is not regarded as entering into a land transaction by reason of entering into a contract to acquire UK land. However,

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Jurisdiction(s):
United Kingdom
Key definition:
Stamp duty definition
What does Stamp duty mean?

A transfer tax payable on documents and instruments, rather than in respect of a transaction. It is most commonly encountered on the transfer of UK certificated shares, where the stock transfer form is the instrument that is stamped.

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