Stamp duty & cash discounts

[GTEYE]

Buying a new build house, been reserved some time.

Developer has now given a cash discount to reflect the “new market” and to reflect the now reduced price of other similar properties (on the same site).

The question is should stamp be payable on the original Gross Price or the reduced Net after discount price.

HMRC seem to suggest the “actual consideration” which suggests the after discount price?

Thoughts would be welcome.

[Sheepshanks]

GTEYE said:

HMRC seem to suggest the “actual consideration” which suggests the after discount price?

Unsurprisingly HMRC are correct.

But watch that it is a discount and the builder doesn't sell at full price then rebate the discount afterwards - they don't usually want to be seen to be reducing prices (although you've said the builder is doing that anyway).