Chargeable Consideration
Chargeable consideration is HMRC's term for the total amount on which stamp duty is calculated. In a simple cash purchase it equals the price paid, but it can also include mortgage debt assumed, non-cash payments, and other forms of value exchanged.
Last verified: April 2026 | Source: GOV.UK
Key Takeaways
- •In most purchases, chargeable consideration equals the cash purchase price paid.
- •Assumption of mortgage debt counts — even if no cash changes hands.
- •VAT (if applicable) is included in chargeable consideration.
- •Moveable items (carpets, curtains, free-standing furniture) are excluded if separately valued.
- •Deferred and contingent payments still count in full when the liability is known or can be estimated.
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What Is Chargeable Consideration
Chargeable consideration is the legal term used by HMRC to describe the total value of everything given in exchange for a property or land interest. It is the figure on which SDLT (and its equivalents LBTT and LTT) is calculated.
For most straightforward purchases, chargeable consideration is simply the agreed purchase price. However, in more complex transactions — such as transfers of equity, gifts where debt is assumed, or part-exchange deals — the calculation can be more involved.
What Is Included
Chargeable consideration includes:
- •The purchase price in cash
- •Any outstanding mortgage or debt assumed by the buyer
- •Release from a debt obligation owed by the seller
- •VAT charged on the transaction (where applicable)
- •Fixtures and fittings that form part of the property (built-in kitchens, bathroom suites)
- •The value of any other property given in part-exchange
What Is Excluded
The following are generally excluded from chargeable consideration if separately identified and fairly valued:
- •Free-standing furniture (sofas, wardrobes, beds)
- •Loose carpets and curtains
- •White goods that are not built in
- •Garden ornaments and equipment
HMRC may challenge allocations that appear artificially high. The value attributed to excluded items must reflect genuine fair market value — not an inflated amount designed to reduce the chargeable consideration.
Non-Monetary Payments
Consideration does not have to be in cash. SDLT applies to the value of anything given in exchange for the property, including:
- •Another property given in part-exchange (valued at market rate)
- •Shares or other securities
- •Services rendered as part of the deal
Where non-cash consideration is given, it is valued at its open market value at the time of the transaction.
Staged and Deferred Payments
If the purchase price is paid in instalments or deferred to a future date, the full total of all payments is still the chargeable consideration. SDLT is due on the full amount — even if some payments have not yet been made at the time of the effective date.
Where a deferred payment is unconditional (i.e. it will definitely be paid), SDLT is calculated on the full aggregate amount at the outset, regardless of when the money actually changes hands.
Contingent Consideration
Contingent consideration arises when part of the price depends on a future event — for example, a clawback payment if planning permission is granted within five years.
At the time of the transaction, the buyer must estimate the maximum contingent consideration and pay SDLT based on the maximum amount. If the contingency does not happen, the buyer can apply for a refund of overpaid SDLT.
Worked Example: Transfer of Equity with Debt
A property worth £400,000 has an outstanding mortgage of £150,000. One owner transfers their 50% share to their partner, who takes on sole responsibility for the full £150,000 mortgage.
- Cash paid = £0
- Mortgage assumed = £150,000
- Chargeable consideration = £150,000
- SDLT calculation (standard rates):
- 0% on first £125,000 = £0
- 2% on remaining £25,000 = £500
- Total SDLT: £500
Official Government Source
For official HMRC guidance on chargeable consideration:
SDLT: the amount used to calculate what is payable — GOV.UKFrequently Asked Questions
What is chargeable consideration?
Chargeable consideration is HMRC's term for the total amount on which SDLT is calculated. In a simple cash purchase, this equals the purchase price. In more complex transactions, it can include assumption of mortgage debt, payment in goods or services, or release from debt obligations.
Does taking on a mortgage count as chargeable consideration?
Yes. If you take on the seller's outstanding mortgage as part of the transaction — for example, in a transfer of equity — the value of the mortgage debt assumed counts as chargeable consideration, even if no cash changes hands.
Are carpets and furniture included in chargeable consideration?
No. Moveable items like carpets, curtains, and free-standing furniture are excluded from chargeable consideration if separately valued at a fair market rate. However, fitted fixtures — such as built-in kitchen and bathroom fittings — are included, as they form part of the property.
In this article
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.