Transitional arrangements for non-residential property

The 7.5% rate applies to instruments (written documents) executed (signed, sealed or both) 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 Stamp Duty rate of 6% applied to instruments transferring non-residential property executed on or after 11 October 2017.

However, theFinance Act 2017 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."

These transitional arrangements also apply to non-residential leases.