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The higher rate charge was increased from 15% to 17% for transactions with an effective date on or after 31 October 2024.

Contracts entered into before 31 October 2024

Where a contract was entered into on or before 30 October 2024 but is completed or substantially performed after that date, the 15% rate will continue to apply at the effective date of transaction unless after 30 October 2024:

·ÌýÌýÌýÌýÌýÌý there is any variation of the contract, or assignment of rights under the contract,

·ÌýÌýÌýÌýÌýÌý the transaction is effected in consequence of the exercise of any option, right of pre-emption or similar right, or

·ÌýÌýÌýÌýÌýÌý there is an assignment, sub-sale or other transaction relating to the whole or part of the subject-matter of the contract, as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

Contracts substantially performed before 31 October 2024

Where a contract which has been entered into and substantially performed later completes, completion will normally be a notifiable transaction (see SDLTM08000).

However, where:

·ÌýÌýÌýÌýÌýÌý a contract is substantially performed before 31 October 2024 but completes on or after that date, and

·ÌýÌýÌýÌýÌýÌý the only reason additional tax would have been chargeable is because of the increase in rates from 15% to 17%,

those provisions are disapplied meaning that a land transaction return is not required and no additional tax will be chargeable.