SDLTM00310a - Scope: What is chargeable

Land transactions: Notifiable transactions FA03/S77: Examples

Example 1

The purchase of a property for £50,000.

As the chargeable consideration does not exceed £ £175,000 stamp duty land tax is chargeable at the 0% rate.

Although no tax is payable the obligation to notify the transaction to HM Revenue & Customs on form SDLT1 remains as the consideration is not less than £40,000.

Example 2

The purchase of a property for £1 where FA03/S53 won’t apply (see SDLTM30220).

No tax is payable and the transaction is not notifiable because of the exemption in FA03/S77(3)(b) for transactions under £ 40,000.

Example 3

A lease for 999 years is granted for no premium and a peppercorn rent.

The transaction is not notifiable.

Example 4

A lease for 999 years is granted for no premium and a £5 annual rent.

As the chargeable consideration is less than £40,000 notification is not required.