Stamp Duties Consolidation Act 1999 section 43

Further consideration in respect of substantial improvements not chargeable

Section 43 limits the stamp duty payable on certain conveyances on sale where the purchaser covenants to make substantial improvements to the property or has already done so.

• Where a conveyance on sale is chargeable with ad valorem stamp duty and the purchaser also covenants to substantially improve or add to the property, the further consideration represented by that covenant is not chargeable to stamp duty.
• The same exemption applies where the purchaser has previously made substantial improvements, or where the covenant relates to the subject matter of the conveyance.
• The section is now mainly relevant to commercial and industrial developments, following the introduction of separate relieving provisions for newly constructed houses.
• Revenue regard a building as substantially completed where the cost of work done exceeds 75% of the total agreed building cost; if substantially completed, or if the site sale and building contracts are interlocked, duty is charged on the full consideration.