P Ltd exchanges contracts with V Ltd to buy a plot of land for
£10m with an additional £5m payable contingent on P Ltd
being successful in obtaining planning permission to build an
industrial park on the land within the next 5 years.
The chargeable consideration for stamp duty land tax is
£15m.
P Ltd does not make an application to defer payment of tax
under FA03/S90, see
SDLTM50900, and pays stamp duty land
tax on the £15m total contingent purchase price.
In the event 5 years passes but P Ltd is unsuccessful in the
planning application so the £5m is not payable.
At the end of 5 years P Ltd can make a claim for repayment of
stamp duty land tax on £5m.
Interest would be payable on this £5m.
