Stamp Duties Consolidation Act 1999 section 34

Agreements in connection with, or in contemplation of, sale

Section 34 is an anti-avoidance measure that ensures full stamp duty is charged where a sale or exchange of property is structured through a long lease or other rights agreement in order to reduce the duty payable.

• Where a vendor or transferor, in connection with or in contemplation of a sale or exchange of property, agrees to grant a lease exceeding 35 years or to grant other rights over the property, the subsequent conveyance or transfer is charged to stamp duty as a conveyance on sale
• The duty is calculated on a consideration equal to the full value of the property, not the consideration actually stated in the conveyance or transfer
• In determining the value of the property, the lease agreement or other rights agreement is disregarded entirely
• The provision applies to conveyances or transfers effecting an exchange executed on or after 20 November 2008, as well as to straightforward sales