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."