Finance Act 2003, section 119

Meaning of “effective date” of a transaction

Part 4 Stamp duty land tax

(1)Except as otherwise provided, the effective date of a land transaction for the purposes of this Part is

[F461 (a)the date of completion, or

(b)such alternative date as the Commissioners for Her Majesty's Revenue and Customs may prescribe by regulations.F461]

(2)Other provision as to the effective date of certain descriptions of land transaction is made by—

  • F462 section 44(4) (contract and conveyance: contract substantially performed without having been completed), ...

  • [F463 section 44A(3) (contract providing for conveyance to third party),

  • section 45A(8) (contract providing for conveyance to third party: effect of transfer of rights),F463]

  • section 46(3) (options and rights of pre-emption).

  • [F464 paragraph 5 of Schedule 2A,F464]

  • [F465 paragraph 3(4) of Schedule 17A (leases that continue after a fixed term),F465]

  • [F466 paragraph 12A(2) of Schedule 17A (agreement for lease followed by substantial performance),

  • paragraph 12B(3) of that Schedule (assignment of agreement for lease occurring after agreement substantially performed), and

  • F467 ...F466]

Definitions used in section 119 3

land transaction

(1) In this Part a “land transaction” means any acquisition of a chargeable interest. As to the meaning of “chargeable interest” see section 48.

Defined in s.43(1) · see it in the full Act
lease

5 In paragraphs 3 and 4 “lease” means any arrangements that provide for a ship to be leased or otherwise made available by one person to another.

Defined in Sch.32 para.5 · see it in the full Act
substantially performed

(5) In this paragraph “substantially performed” and “completed” have the same meanings as in section 44 (contract and conveyance) .

Defined in Sch.17A para.12A(5) · see it in the full Act

Cases considering section 119 6

The Tower One St George Wharf Limited v The Commissioners for HMRC

[2025] EWCA Civ 1588 · 10 December 2025Defines

The defined term effective date generally means the date of completion. Its use caused the drafting difficulty in section 54(4)(b), but did not prevent the Court correcting the obvious error. (see paras [17], [61]-[67])

The Tower One St George Wharf Limited v The Commissioners for HMRC

[2024] UKUT 373 (TCC) · 20 November 2024Interprets

Although effective date generally means completion date, the Tribunal rejected construing it as the precise time of the event. It nevertheless construed the Case 3 look-back as extending to transactions immediately before the later transaction. (see paras [158]-[163])

Amarjeet Mudan & Anor v The Commissioners for HMRC

[2024] UKUT 307 (TCC) · 2 October 2024Interprets

The provision fixes the effective date for SDLT purposes. The court held that it does not require a snapshot test of immediate habitability; the enquiry remains the nature of the chargeable interest acquired at completion. (see paras [46]; [52]-[55])

What each judgment says about section 119 is in the case-law panel in the full Act.

Amendments and notes

8 notes from legislation.gov.uk

Amendments

  1. F461Words in s. 119(1) substituted (20.7.2005) by Finance (No. 2) Act 2005 (c. 22), s. 47(3)
  2. F462Word in s. 119(2) repealed (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2)
  3. F463Words in s. 119(2) inserted (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 8(a)
  4. F464Words in s. 119(2) inserted (with effect in accordance with Sch. 39 para. 11 of the amending Act) by Finance Act 2013 (c. 29), Sch. 39 para. 7
  5. F465Words in s. 119(2) inserted (with effect in accordance with Sch. 41 para. 8(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 5
  6. F466Words in s. 119(2) inserted (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 8(b)
  7. F467Words in s. 119(2) omitted (with effect in accordance with s. 29(4) of the amending Act) by virtue of Scotland Act 2012 (c. 11), s. 44(2)(b)(3)(b), Sch. 3 para. 21 (with s. 29(5)(6)); S.I. 2015/637, art. 2

Commencement

  1. I86Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)