Example 2 of SDLT Calculation Archived, Now Found at SDLT11055

SDLT and Deposit or Loan Arrangements on Archived HMRC Guidance

This archived HMRC manual page does not explain the SDLT treatment of deposit and loan arrangements itself. Its main purpose is to direct readers to the replacement example at SDLT11055, which should be read alongside the legislation on chargeable consideration rather than relied on as the law.

• The archived page is only a signpost and says that the example previously at SDLTM13050 has moved to SDLT11055.
• The key SDLT issue is whether deposits, loans, or linked funding arrangements form part of the chargeable consideration for the land transaction.
• You should not cite the archived page as HMRC’s current substantive guidance, because it no longer contains the worked example.
• The correct analysis depends on the legal structure of the deal, including what is given for the land and what the contract and finance documents say.
• A buyer’s borrowing may simply fund the purchase, but some debt-related arrangements may affect SDLT if they form part of the consideration.
• HMRC manual examples are only guidance, so the starting point must always be the SDLT legislation and the actual transaction documents.

Scroll down for the full analysis.

SDLT and deposit and loan arrangements: why this archived example matters

This page concerns an HMRC manual entry that has been archived and replaced by a different reference. The practical point is not a new tax rule in itself, but where HMRC now places its example on how stamp duty land tax may be calculated when a land transaction involves deposit and loan arrangements.

What this rule is about

In SDLT, the amount of tax depends on the chargeable consideration for the land transaction. Where a deal includes deposits, loans, or other funding arrangements linked to the purchase, the key question is whether those amounts form part of the consideration for the acquisition of the land, and if so how they should be treated in the calculation.

The archived page does not set out the substantive rule. It simply states that “Example 2” has been moved. That matters because HMRC’s manuals are often organised by topic, and examples are used to show how HMRC applies the legislation in practice.

What the official source says

The source says only that SDLTM13050 is archived and that the example has been moved to SDLT11055.

So the legal or practical content is no longer on this page. The important takeaway from the source itself is that readers should not rely on SDLTM13050 for the example. They should look at the replacement manual page instead.

What this means in practice

If you were using this archived page to understand how SDLT applies to a transaction involving a deposit and a loan, this page does not give you the answer. It is only a signpost.

In practice, that means:

• you should find the replacement example at SDLT11055;
• you should read the example alongside the underlying legislation on chargeable consideration, not as a substitute for it;
• you should be careful not to cite the archived page as if it still contained HMRC’s substantive explanation.

This is especially important in SDLT because funding arrangements can be misunderstood. A deposit paid on exchange, a retained amount, a loan from the seller, or a separate financing arrangement may have different consequences depending on the legal structure of the transaction.

How to analyse it

Because the archived page contains no worked rule, the sensible approach is to use it only as a pointer and then analyse the transaction properly.

Questions to ask include:

• What exactly is being given for the land?
• Is the deposit simply part-payment of the price, or does it have some other legal character?
• Is any loan part of the consideration for the land, or is it a separate funding arrangement?
• Does the buyer assume, release, or satisfy any debt as part of the deal?
• What do the contract, transfer, and finance documents actually say?

Those questions matter because SDLT looks at the real legal and economic substance of what is given for the acquisition, but it does so through the statutory rules on chargeable consideration. An HMRC example may help illustrate the point, but the legislation remains the starting point.

Example

Illustration: a buyer agrees to buy land and pays a deposit on exchange. The rest of the price is funded partly from the buyer’s own money and partly from borrowing. The SDLT result may depend on whether the borrowing is simply the buyer’s way of financing the purchase, or whether the transaction itself includes some separate arrangement that counts as consideration for the land. The archived page does not explain that distinction, so the replacement example and the legislation need to be checked.

Why this can be difficult in practice

Deposit and loan arrangements can be fact-sensitive. Similar commercial outcomes can be documented in different ways, and those differences may affect the SDLT analysis.

There is also a common trap here: treating an HMRC manual example as if it creates the law. It does not. A manual shows HMRC’s view of how the law applies. If the example has been moved, the current manual location should be used, and the underlying statutory rules should still be checked.

Key takeaways

• This archived page does not contain the substantive example; it redirects readers to SDLT11055.
• The real issue is how deposits and loan arrangements affect chargeable consideration for SDLT.
• Use the replacement example as guidance, but analyse the actual transaction against the legislation and the transaction documents.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Example 2 of SDLT Calculation Archived, Now Found at SDLT11055

View all HMRC SDLT Guidance Pages Here