242 Where consideration not ascertainable from conveyance or lease.U.K.
(1)Where, for the purposes of stamp duty chargeable under or by reference to [F1Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)], the consideration, or any part of the consideration, for—
(a)the transfer or vesting of any estate or interest in land, or
(b)the grant of any [F2lease],
cannot, apart from this subsection, be ascertained at the time the instrument in question is executed, the consideration for the transfer, vesting or grant shall for those purposes be taken to be the market value immediately before the instrument is executed of the estate or interest transferred or vested or, as the case may be, the [F2lease] granted.
(2)Where, for the purposes of stamp duty chargeable under [F3paragraph 12 of Schedule 13 to the Finance Act 1999], the rent, or any part of the rent, payable under any [F2lease] cannot, apart from this subsection, be ascertained at the time it is executed, the rent shall for those purposes be taken to be the market rent at that time.
(3)For the purposes of this section—
(a)the cases where consideration or rent cannot be ascertained at any time do not include cases where the consideration or rent could be ascertained on the assumption that any future event mentioned in the instrument in question were or were not to occur, and
(b)the market rent of a [F2lease] at any time is the rent which the [F2lease] might reasonably be expected to fetch at that time in the open market,
and in this section “market value” has the same meaning as in section 241 above.
(4)This section shall apply to instruments executed after 7th December 1993.
Textual Amendments
F1Words in s. 242(1) substituted (27.7.1999 with effect as mentioned in s. 112(6) of the amending Act) by 1999 c. 16, s. 112(4), 122, Sch. 14 para. 31(3)
F2Words in s. 242 substituted (27.7.1999 with effect as mentioned in s. 112(6) of the amending Act) by 1999 c. 16, s. 112(4), 122, Sch. 14 para. 31(2)
F3Words in s. 242(2) substituted (27.7.1999 with effect as mentioned in s. 112(6) of the amending Act) by 1999 c. 16, s. 112(4), 122, Sch. 14 para. 31(4)