S18.4 What is a Land Transaction?

The requirement to examine a certificate arises in respect of land transactions. A land transaction is defined in Section 43 of the Act as the ‘acquisition of a chargeable interest.’ A chargeable interest is defined in Section 48 of the Act as:

‘(a) an estate interest right or power in or over land in the United Kingdom or

(b) the benefit of an obligation, restriction or condition affecting the value of any estate, interest, right or power over land in the United Kingdom other than an exempt interest.’

This is intentionally a very wide definition which will bring most transactions relating to land within the scope of SDLT.

Exempt interests are any security interest or a license to use or occupy land. Security interest is an interest held to secure the payment of money or performance of an obligation. This would include a standard security or any deed relating thereto (e.g. a discharge, variation, deed of restriction etc). A full list of exempt transactions, together with those transactions falling outwith the definition of a land transaction, is given in Appendix 1.

Except for the transaction types listed in Appendix 1 all other land transactions come within the scope of chargeable interests and as such a certificate will have to accompany any application to record a deed relating to them. This is the case even where the particular transaction is subject to a relief from SDLT. For instance, transactions relating to land lying in a disadvantaged area will require to be notified to the Inland Revenue and a Revenue certificate will have to be obtained notwithstanding that there is no actual liability for SDLT.