Finance Act, 1986

Stamp duty on certain instruments.

96.—(1) Where, in connection with, or in contemplation of, a sale of property, the vendor enters into—

(a) an agreement for the grant of a lease of the property for a term exceeding 35 years, or

(b) an agreement (other than a contract for the sale of the property) under which the vendor grants any other rights in relation to the property,

any conveyance or transfer, subject to the agreement, of the property by the vendor shall be charged to stamp duty as a conveyance or transfer on sale of the property for a consideration equal to the value of the property and the value shall be determined without regard to the agreement.

(2) A declaration by deed under section 65 (2) of the Conveyancing Act, 1881 , to the effect that, from and after the execution of the deed, a term subsisting in land shall be enlarged, shall, where the term was created by an instrument executed within 6 years of the date of the execution of the deed, be charged to stamp duty as a conveyance or transfer on sale of that land for a consideration equal to the value of the land and that value shall be determined without regard to the said term or any part thereof.

(3) The provisions of section 50 of the Finance Act, 1979 , shall not apply to a deed which is chargeable to stamp duty under subsection (2).

(4) This section shall have effect with respect to any instrument executed on or after the date of the passing of this Act.