When is a section 75A stamp duty transaction treated as happening?
Section 75A effective date
Where section 75A applies, the notional transaction normally takes the last completion date in the scheme. Use an earlier date if the last relevant contract was substantially performed before then.
- Check all scheme transactions
- Check possession and payments
- Use the earlier applicable date
Scroll down for the full analysis.
Read the original guidance here:
When is a section 75A stamp duty transaction treated as happening?
When is a section 75A stamp duty transaction treated as happening?
If the section 75A anti-avoidance rule applies to connected land dealings, it creates a notional transaction for stamp duty land tax whose date can precede final completion. An earlier date can count instead.
What this rule is about
Connected land dealings can constitute scheme transactions for section 75A, and, for the section’s purposes, the law treats a direct transaction as having happened. Its date matters when working out the SDLT position.
What the official source says
HMRC’s manual, reflecting section 75A(6), says that the effective date is the earlier of two dates: the last scheme completion and the last substantial-performance date under a connected contract. The earlier one applies.
- Start with the last date on which any scheme transaction completes.
- Next, identify the last date on which a contract connected with those transactions was substantially performed.
- If that substantial-performance date is earlier, use it instead.
What this means in practice
The last transfer may not fix it. A contract may instead have been substantially performed before formal completion.
- Build a full timeline, rather than looking only at the final transfer.
- Check both completion dates and earlier events under each contract.
How to analyse it
Ask one question at a time: what was the final completion date, and was there an earlier substantial-performance date?
- List every transaction that forms part of the scheme.
- Record the completion date for each one.
- Identify each related contract and any date it was substantially performed.
- Use the earlier of the final completion date and the final substantial-performance date.
Example
Maya’s scheme transactions complete on 3 May and 8 May. A related contract was substantially performed on 6 May. The last completion date is 8 May. Because 6 May precedes the last completion date, 8 May, it is the effective date for the section 75A notional transaction rather than 8 May. The earlier date governs.
Why this can be difficult in practice
This is the part people can miss: substantial performance is not limited to a formal completion. Under section 44, it can arise when the buyer takes possession of most or all of the property, or pays almost all the amount due.
- Possession can include the right to receive rents or other income.
- The paperwork and payment trail may matter more than the completion statement.
Key takeaways
- Section 75A has its own rule for the notional transaction’s date.
- An earlier substantial-performance date can replace the last completion date.
- Keep clear evidence of contracts, possession and payments.
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 75A — sets the notional transaction’s effective date
- FA 2003 section 44 — defines when a contract is substantially performed; explains possession for substantial performance; explains when payment is a substantial amount
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
- Whether and when a contract was substantially performed can depend on the facts, including possession, payments and the contracts involved.
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.
- A timeline of every scheme transaction and its completion date.
- All contracts and related agreements.
- Evidence of possession, including rights to rent or income.
- Evidence of payments and what each payment was for.
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 When is a section 75A stamp duty transaction treated as happening? [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 75A - sets the notional transaction’s effective date https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 - FA 2003 section 44 - defines when a contract is substantially performed https://www.legislation.gov.uk/ukpga/2003/14/section/44/2025-11-17 - FA 2003 section 44 - explains possession for substantial performance https://www.legislation.gov.uk/ukpga/2003/14/section/44/2025-11-17 - FA 2003 section 44 - explains when payment is a substantial amount https://www.legislation.gov.uk/ukpga/2003/14/section/44/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09120 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 - Whether and when a contract was substantially performed can depend on the facts, including possession, payments and the contracts involved. 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: When is a section 75A stamp duty transaction treated as happening?
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