Stamp duty when you pay for property with services
Services instead of cash
When services form part of a property deal, their market value may be added to the cash price for SDLT.
- Check every obligation in the deal.
- Value services on an open-market basis.
- Building work follows a separate rule.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty when you pay for property with services
If you promise work or services as part of a property deal, stamp duty may be based on more than the cash price. The value of those services can count as well. That can increase the amount used to work out SDLT.
What this rule is about
Most property purchases involve money. In some deals, the buyer also agrees to do something for the seller, such as provide professional services. The law treats that promise as part of what you give for the property.
The central question is this: what would someone normally pay for those services in the open market?
What the official source says
HMRC’s manual states that, where services are given for property and form all or part of the consideration, they are valued at their open-market value. An independent customer’s price is the test.
- The services can make up all or only part of the price.
- Their value is included in the amount used for SDLT.
- Building work has a separate rule.
- That rule covers construction, improvement or repair work, and other work which improves land.
- A special exception can apply to certain public or educational body arrangements.
What this means in practice
When a deal includes a promised service alongside a low cash price, you cannot assume that the stamp duty calculation will use only that cash amount. The service can increase the figure used in the calculation.
- List every thing you agree to give the seller.
- Separate cash, services and building work.
- Put a realistic market price on any services.
How to analyse it
Begin with the deal itself rather than the label in the contract. Describing a promise as a separate arrangement does not decide whether it forms part of the price.
- Read the sale contract and related agreements.
- Ask whether the buyer must provide a service for the deal.
- Check whether it is building work under the separate rule.
- Find evidence of what an independent customer would pay.
- Add the service value to the cash price where the rule applies.
Example
Alex buys a shop for £180,000 and agrees to provide accounting services to the seller. Independent evidence shows those services would cost £12,000. If they form part of the deal, the amount used for SDLT includes £192,000: the cash price plus the service value.
Why this can be difficult in practice
This is the point people may miss. The written price may not reveal the full deal. It can also be uncertain whether promised work is a service or building work under the separate rule.
- A vague promise is harder to value.
- Related agreements may show what was really agreed.
- Invoices and quotes may help support the market value.
Key takeaways
- Services can count as part of the price for SDLT.
- Use the open-market price of the services.
- Check the separate rule for building work.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 section 50 — schedule 4 rules for the amount paid
- FA 2003 Schedule 4 para 10 — when building works may be left out
- FA 2003 Schedule 4 para 11 — valuing services given for a property
- FA 2003 Schedule 4 para 17 — special public and educational body arrangements
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- It can be fact-sensitive whether an obligation is a service or building work covered by the separate works rule.
- Open-market value depends on the service promised, its scope and evidence of the price an independent customer would pay.
- For a transaction after 17 November 2025, the current legislation should be checked.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The contract and any side agreement describing what the buyer must do
- A clear scope, timetable and any agreed value for the services
- Independent quotes, rates or comparable evidence for the service value
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION Stamp duty when you pay for property with services [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 section 50 - schedule 4 rules for the amount paid https://www.legislation.gov.uk/ukpga/2003/14/section/50/2025-11-17 - FA 2003 Schedule 4 para 10 - when building works may be left out https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/10/2025-11-17 - FA 2003 Schedule 4 para 11 - valuing services given for a property https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/11/2025-11-17 - FA 2003 Schedule 4 para 17 - special public and educational body arrangements https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/17/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm04070 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - It can be fact-sensitive whether an obligation is a service or building work covered by the separate works rule. - Open-market value depends on the service promised, its scope and evidence of the price an independent customer would pay. - For a transaction after 17 November 2025, the current legislation should be checked. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 31 August 2026
Useful article? You may find it helpful to read the original guidance here: Stamp duty when you pay for property with services
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