Understanding Chargeable Consideration for Stamp Duty Land Tax: Money and Non-Monetary Forms

SDLT chargeable consideration: cash and non-cash value

For SDLT, chargeable consideration means everything given in return for a land transaction, not just the cash price in the contract. It can include money, debt being taken on or released, works or services, and other property, with non-cash items usually valued at market value unless a specific legal rule says otherwise.

• SDLT is based on what is actually given for the land transaction, not only the stated purchase price.
• Chargeable consideration includes anything that is money or money’s worth.
• Non-cash consideration can include assuming or releasing a debt, carrying out works or services, or transferring another asset.
• Where consideration is non-monetary, the usual starting point is its market value unless legislation provides a different rule.
• A deal with a low cash payment may still have a higher SDLT charge if other valuable elements form part of the bargain.
• In practice, the key issues are identifying what is truly given for the transaction and valuing any non-cash element correctly.

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SDLT chargeable consideration: cash, debts, services and other non-cash value

This page explains what counts as “chargeable consideration” for Stamp Duty Land Tax and why that matters. In simple terms, SDLT is charged by reference to what is given for the land transaction. That is not limited to cash. If value is given in another form, that can still count, and it may need to be valued at market value.

What this rule is about

The legal issue is identifying what the buyer, or another party connected with the transaction, is giving in return for the land. SDLT does not look only at the price written in the contract. It looks more broadly at the consideration for the transaction.

Under the source material, chargeable consideration includes anything given for the transaction that is money or money’s worth. Cash is the most obvious example, but non-cash items can also be relevant. This matters because SDLT liability depends on the amount of chargeable consideration.

What the official source says

The source states that chargeable consideration comprises anything given for the transaction that is money or money’s worth. Cash is the usual form of consideration and is normally easy to value.

It also says that consideration can be non-monetary. The examples given are:

• the release or assumption of a debt
• works and services
• the transfer of other property

As a general rule, where consideration is non-monetary, it should be valued at its market value unless the legislation provides otherwise.

What this means in practice

The practical point is that you should not stop at the cash purchase price. If the buyer gives something else of value as part of the deal, that may also form part of the SDLT calculation.

For example, the consideration may include:

• cash paid on completion
• taking over an existing liability that the seller would otherwise have borne
• agreeing to carry out works as part of what is being given for the property
• transferring another asset in exchange for the land

If part of the deal is not cash, the source says the starting point is market value for that non-cash element. So the SDLT analysis is not limited to what the parties say something is worth between themselves. The legislation may require an objective valuation.

This can make a real difference. A transaction that appears to involve a modest cash payment may still have higher chargeable consideration once non-cash elements are added.

How to analyse it

A sensible way to approach the issue is to ask the following questions:

• What is being given in return for the land transaction?
• Is the only consideration cash, or is something else of value also being provided?
• If there is a debt involved, is it being released, assumed, or otherwise dealt with as part of the transaction?
• Are any works, services, or transfers of other property part of the bargain?
• If any part of the consideration is non-cash, what is its market value?
• Is there any specific legislative rule that displaces the general market value approach for that kind of consideration?

The key is to identify the real substance of what is being provided for the transaction, not just the cash figure shown in the sale contract.

Example

Illustration: A buyer acquires land from a seller. The contract says the buyer will pay some cash, and in addition the buyer will transfer a separate asset to the seller as part of the deal. On the source material, the transfer of that other property is capable of being chargeable consideration. The SDLT analysis would therefore not look only at the cash paid. The non-cash asset would also need to be considered, and the general rule is that it should be valued at market value unless legislation says otherwise.

Why this can be difficult in practice

The main difficulty is working out exactly what has been given “for the transaction”. In straightforward purchases, the answer is obvious. In more structured or unusual arrangements, it may be less clear whether a payment, assumption of a liability, piece of work, or transfer of an asset is truly part of the consideration for the land transaction.

Valuation can also be difficult. Cash is simple. Non-cash value is not. Market value may be disputed, especially where the item transferred is unusual, where services are involved, or where the parties have bundled several commercial arrangements together.

The source also notes that the market value rule applies as a general rule unless the legislation provides otherwise. That means you should be careful not to assume the general rule always gives the final answer. In some cases, a more specific statutory rule may apply.

Key takeaways

• Chargeable consideration for SDLT is not limited to cash; it includes anything given for the transaction that is money or money’s worth.
• Non-cash consideration can include debt assumption or release, works and services, and the transfer of other property.
• As a general rule, non-monetary consideration is valued at market value unless a more specific legislative rule applies.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Understanding Chargeable Consideration for Stamp Duty Land Tax: Money and Non-Monetary Forms

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