Stamp duty can be a significant cost for a party who proposes to enter into a transaction involving real property where a duty liability arises under the duties legislation in a jurisdiction. As a result, the duty implications of entering into certain property transactions need to be carefully considered, particularly as it can affect the structuring of a deal or its commercial feasibility.  

To assist property and corporate transaction lawyers to understand the duty implications of certain transactions involving real property, Practical Law Commercial Real Estate has recently published Practice note, Duty implications of common real property transactions. This note provides an overview of the typical duty consequences arising in relation to common real property transactions, in particular:

• The entry into contracts for sale of land.
• Transactions involving options to acquire land.
• The grant, transfer (or assignment) or surrender of a lease.

It also provides guidance on certain exemptions or concessions from liability for duty, including corporate reconstructions, transfers involving custodians, change of trustee transactions and certain leasing transactions.