Stamp Duty and leases
Transitional arrangements
Note
The 7.5% rate applies to instruments (written documents) executed on or after 9 October 2019.
Budget 2020 provides for transitional arrangements.
Under the arrangements:
- where there is a binding contract in place before 9 October 2019
- and
- the instrument of transfer is executed before 1 January 2020
- and
- the instrument contains a certificate
you pay Stamp Duty at the pre-Budget rate of 6%.
The wording of the certificate is:
"It is hereby certified that this instrument was executed solely in pursuance of a binding contract entered into before 9 October 2019."
The Finance Act 2017 increased the rate on premiums from 2% to 6%. That Act also provided for transitional arrangements.
Under the arrangements a 2% rate of duty is chargeable on instruments executed before 1 January 2018:
- where there is a binding contract in place before 11 October 2017
- and
- the instrument contains a certificate.
The wording of the certificate is:
"It is hereby certified that this instrument was executed solely in pursuance of a binding contract entered into before 11 October 2017."