HMLR publishes guidance on discounts and incentives within applications

Article summary

HM Land Registry (HMLR) has published guidance on the distinction between discounts and incentives in developer applications. Discounts involve a cash sum deducted from the purchase price of a property, while incentives are offers unrelated to the purchase price, such as help with moving costs/stamp duty land tax or upgrades to fittings. HMLR clarified that it deducts discounts from the purchase price but takes no action on incentives. Purchasers are advised to accurately report the net price paid in the consideration panel of the TP1 form, identifying any discounts or incentives in the additional provisions panel. The guidance provides examples on how to properly report prices and avoid requisitions to avoid confusion, streamline communication between HMLR and conveyancers, and maintain the accuracy of price-paid data.