Stamp Duty
50.6 Stamp Duty Rates
Since 1997 there have been various changes to stamp duty payable on considerations over £60,000 and these changes are outlined in the following paragraphs.
The Budget on 2 July 1997 increased the rate of Stamp duty payable and applies to documents executed on or after 8 July 1997.
| Stamp duty rates for deeds executed on or after 8 July 1997 and before 23 March 1998 | |
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1% of consideration (rounded up to nearest £100) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 1.5% of consideration (rounded up to nearest £100) F.A.C for £500,000 |
| Uncertified Transfers | 2%
of consideration (rounded up to nearest (£100) No F.A.C. |
The budget on 17 March 1998 increased the rates of stamp duty on transfers of property for more than £250,000. The new rates apply to documents executed on or after 24 March 1998.
Stamp duty rates for deeds executed on or after 24 March 1998 and before 16 March 1999 |
|
| £60,000 + under | 0%
Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1
% of consideration (rounded up to nearest £100) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 2%
of consideration (rounded up to nearest £100) F.A.C. for £500,000 |
| Over £500,000 | 3%
of consideration (rounded up to nearest £100) No F.A.C. |
The budget on 9 March 1999 proposed increases in the rates of stamp duty payable on the transfer of property for more than £250,000.
The new rates apply to documents executed on or after 16 March 1999.
Stamp duty rates for deeds executed on or after 16 March 1999 and before 1 October 1999 |
|
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1%
of consideration (rounded up to nearest £100) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 2.5%
of consideration (rounded up to nearest £100) F.A.C. for £500,000 |
| Over £500,000 | 3.5% of consideration no F.A.C. |
The Finance Act 1999 introduced new penalties and interest charges for deeds stamped late and provided that duties be rounded up to the nearest £5. It also increased the fixed stamp from 50p to £5. The types of deed involved are listed at the end of this chapter.
The new rates apply to documents executed on or after 1 October 1999.
Stamp duty rates for deeds executed on or after 1 October 1999 and before 28 March 2000 |
|
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1%
of consideration (rounded up to nearest £5 of stamp duty
payment) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 2.5%
of consideration (rounded up to nearest £5 of stamp duty
payment) F.A.C. for £500,000 |
| Over £500,000 | 3.5%
of consideration no F.A.C. |
New penalties for late stamping are applied to deeds executed on or after 1 October 1999 (section 109(1)). If executed within the UK, the deed must be stamped within 30 days after the date of execution (see Date of execution for the definition of ‘date of execution’ in this context). If executed outwith the UK, the 30 day period begins upon the first day of first receipt of the deed in the UK. If the deed is presented for stamping within one year after the end of the 30 day period, the maximum penalty is £300 or the amount of the unpaid duty, whichever is less. If the deed is presented for stamping later than one year after the end of the 30 day period, the maximum penalty is £300 or the amount of the unpaid duty, whichever is greater. Penalty is not payable if there is a reasonable excuse for the delay in presenting the instrument for stamping.
The Keeper assumes without further enquiry that any deed which has been stamped or noted by the Stamp Office bears the correct penalty.
Where instruments executed on or after 1 October 1999 are stamped late, in addition to any penalty charged, interest will be due on the unpaid original stamp duty (section 109(1)). The rate of interest is to be prescribed by the Treasury. Once calculated, the interest is to be rounded down to the nearest £5 and will only be payable if the rounded down amount is £25 or more. Interest will be payable whether or not there is good reason for the delay in stamping the deed.
Again, where the deed has been seen by the Stamp Office, the Keeper will assume, without further enquiry, that the correct interest charge has been paid.
The budget on 21 March 2000 announced changes to Stamp duty payable on transfers of property for more than £250,000.
The new rates apply to documents executed on or after 28 March 2000.
| Stamp duty rates for deeds executed on or after 28 March 2000 | |
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1%
of consideration (rounded up to nearest £5 of stamp duty
payment) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 3% of
consideration (rounded up to nearest £5 of stamp duty payment) F.A.C. for £500,000 |
| Over £500,000 | 4%
of consideration no F.A.C. |
The formula for calculating the amount of stamp duty payable on leasehold property is slightly different.
Stamp duty on the assignment of an existing lease is charged in the same way as freehold. On the grant of a new lease, duty is charged separately on the premium (at the sale rate as for a sale) and on the average annual rent (under a scale of rates varying with the length of the term). If duty is payable on both the rent and the premium under a lease, the stamp duty is calculated separately then added together, with the total rounded up to the next multiple of £5.
The rates in the table following are unaffected by the Finance Act 2000, which only affects new leases of up to 7 years duration (or of indefinite term). To help both tenants and landlords, the threshold for stamp duty charge was increased from £500 to £5000 on the annual rent. In leases of this duration, where no lease premium is involved, tenants will not need to have such leases stamped, and landlords will not need to have the counterparts stamped. The new rates apply to documents executed after 28 March 2000, unless the document results form the exercise of an option, an assignment, or further contract made after 21 March 2000.
No certificate of value is appropriate where the premium exceeds £500,000 and duty is payable at the rate of 3.5% rounded up to the next £5.
Note: if the average rental is more than £600, a certificate of value for £60,000 cannot be included in the document. A certificate of value of £250,000 may be included and duty will then be worked out at 1% on the premium.
The rate of duty payable will vary according to the length of the period. Here is a list of the different rates:
LENGTH OF PERIOD |
RATE OF DUTY |
| Not more than 7 years (includes exactly 7 years) | 1% |
| More than 7 years but not more than 35 years | 2% |
| More than 35 years but not more than 100 years | 12% |
| Over 100 years | 24% |
Example
A flat is leased for a premium of £125,625 on a 19 year lease at an average annual rent of £575. The amount of stamp duty is:
Duty of 2% on the rent = £11.50
Total = £1,267.75
Rounded up to nearest £5 = £1,270.00
The rent for the whole period of the lease is added up and the total divided by the number of years (or part years) of the lease. If any part of the period has expired before the date of execution of the lease or date of conclusion of missives of let, this is not included in the calculation of the average annual rent.
Example
| A lease for 99 years commenced on 1st January 2000. | |
| The annual rent is: | |
| The date of execution is 14th March 2000 so 73 days of the term have expired before execution | |
| The average annual rent is worked out as follows:- | |
| 1 year less 73 days @ £50 = | £40 |
| (£50 ¸ 365 X 292) | |
| 32 years @ £50 = | £1,600 |
| 33 years @ £100 = | £3,300 |
| 33 years @ £150 = | £4,950 |
| Total rent payable for the remainder of the period from the date of execution | £9,890 |
| Average annual rent = (Total rent / period still remaining) | |
| £9,890 / 98 years 292 days = | £100.10 |
| Duty charged at 12% = | £12.01 |
| Total rounded up to nearest £5 = | £15.00 |
An agreement for lease is liable to stamp duty as if it were an actual lease. If a lease is subsequently granted which is in conformity with the agreement, or which relates to substantially the same property and terms of years as the agreement, the duty on the lease is abated by the amount of duty already paid on the agreement.
If an agreement for lease is made on or before 9 March 1999, but the lease granted as a result of the agreement is not granted until 16 March 1999 or later, the old rate of duty will apply to the agreement. The lease itself will also be liable if the agreement constitutes a binding contract to grant the lease. Any duty already paid on the agreement will be credited against the duty payable on the lease if the conditions in section 75 of the Stamp Act 1891 are met (agreements for not more than 35 years to be charged as leases).
50.7.2 Agreements to renounce leases
Deeds of renunciation are chargeable to ad valorem duty. But where there is no deed and a lease is surrendered or renounced by operation of law, up till now no liability for stamp duty has risen. From 8 December 1993, any renunciation of a lease, which is not a separate deed of renunciation, will attract stamp duty if the facts are represented in another document, e.g. a letter.
This is designed to close a stamp duty loophole which was being exploited south of the border and it is unlikely to have much relevance to the Agency. It applies only to voluntary renunciation by agreement between landlord and tenant; hence it does not affect the termination of leases by other means, e.g. irritancy. For further details on irritancies in leases, see Termination of leases.
50.8 Stamp duty exemption for disadvantaged areas
Section 92(1) of the Finance Act 2001 makes provision for an exemption from stamp duty on certain transactions in designated disadvantaged areas. This provision takes effect for deeds executed on or after 30 November 2001. 75 areas in Scotland have initially been designated, mostly within the major cities. The determination of whether a property lies in a designated area will be made by the Stamp Office according to postcode.
Since 10 April 2003, when the Stamp Duty (Disadvantaged Areas) (Application of Exemptions) Regulations 2003 took effect, the exemption has been applied differently for deeds executed on and after that date, depending upon whether the property affected by the conveyance or transfer is residential or commercial.
50.8.1 Deeds executed prior to 10 April 2003
Scope of exemption
The exemption applies to conveyances of subjects wholly or partly within designated areas at considerations exceeding £60,000 but not exceeding £150,000, in respect of both residential and commercial property. The exemption also applies to lease premiums within the same limits but not to any duty payable in respect of the rent in such a lease. Where subjects are only partly within a designated area the stamp duty will be calculated by apportioning the consideration between the part within the designated area and the remainder.
The exemption does not apply to any instruments subject to the £5 fixed duty.
Certification and adjudication of deeds
A deed must be certified to the Stamp Office as falling within the exemption. Whilst the certificate does not need to be within the body of the deed, the Inland Revenue recommended the use of a certificate within the deed in the following terms: -
"I / We hereby certify that this instrument is exempt from stamp duty by virtue of the provisions of section 92 of the Finance Act 2001"
Whether or not the deed contains such a certificate, it must be lodged with the Stamp Office for adjudication. If the Stamp Office are satisfied, the deed will be stamped with a denoting stamp which indicates that it has been subject to adjudication.
Registration implications
Every deed, bearing to benefit from the exemption, and executed on or after 30 November 2001, but prior to 10 April 2003, whether for residential or non-residential property, must bear a denoting stamp before it may be accepted for registration or recording. Where a deed is so stamped the Keeper will assume without further enquiry that it is correctly stamped. Where it is claimed that the deed benefits from the exemption but no denoting stamp appears on the deed, the normal procedures for incorrectly stamped deeds will apply.
50.8.2 Deeds executed on and after 10 April 2003
Scope of exemption
In respect of conveyances executed on and after 10 April 2003, the £150,000 limit for relief outlined at paragraph 50.8.1 continues to apply but only to conveyances or transfers of residential property, although it should be noted that the rental element of residential leases is also eligible for relief.
In contrast, full relief from stamp duty is available in respect of conveyances or transfers of commercial, non-residential property, executed on and after 10 April 2003, in consequence of the Stamp Duty (Disadvantaged Areas) Regulations 2003. For non-residential properties, such full relief is available for both the rental element of leases and for any premium. Where subjects are only partly within a designated area the stamp duty will be calculated by apportioning the consideration between the part within the designated area and the remainder.
Certification for residential property within disadvantaged areas
A deed must be certified to the Stamp Office as falling within the exemption. Whilst the certificate does not need to be within the body of the deed, the Inland Revenue (per Statement of Practice 1/2003) recommends the use of a certificate within the deed in the following terms: -
"I / We hereby certify that the transaction effected by this instrument does not form part of a larger transaction or series of transactions in respect of which the amount or value of the consideration exceeds £150,000 and that stamp duty is not chargeable thereon by virtue of the provisions of sections 92 and 92A of the Finance Act 2001"
Whether or not the deed contains such a certificate, it must be lodged with the Stamp Office for adjudication. If the Stamp Office is satisfied, the deed will be stamped with a denoting stamp, which indicates that it has been subject to adjudication.
Certification for non-residential property within disadvantaged area
A deed must be certified to the Stamp Office as falling within the exemption for non-residential properties. The Inland Revenue has recommended the use of the following certificate within the body of the deed:
"I / We hereby certify that this is an instrument in respect of non-residential property on which stamp duty is not chargeable by virtue of the provisions of section 92 of the Finance Act 2001".
Whether or not the deed contains such a certificate, it must be lodged with the Stamp Office for adjudication. If the Stamp Office is satisfied, the deed will be stamped with a denoting stamp, which indicates that it has been subject to adjudication.
Registration implications
Every deed executed on or after 10 April 2003 bearing to benefit from either the exemption for non-residential or residential property must bear a denoting stamp, indicating it has been subject to adjudication, before it may be accepted for registration. Where it does so, the Keeper will assume that it is correctly stamped without further enquiry. Where such an exemption is claimed but no denoting stamp appears on the deed, the procedures for incorrectly stamped deeds apply.
The Inland Revenue have agreed that, in certain cases, a disposition or notice of title may be stamped after it has been recorded. When sending in such a writ for recording, the agents must enclose a copy of the letter sent to them by the Inland Revenue agreeing to the subsequent stamping of the writ. In these cases, re-recording after stamping is not necessary.
Section 6 of the Administration of Justice (Emergency Provisions) (Scotland) Act 1979, provided that from 23 February 1979 until a date to be prescribed (28 June 1979) any writ liable to stamp duty might be recorded in the Sasine Register, the Register of the Books of Council and Session and the Personal Registers without the writ being duly stamped, provided that it was duly stamped within 3 months of its recording or such later time as the Commissioners of the Inland Revenue might allow.
It is not the duty of the Agency to be concerned with any writ which is over-stamped. Any case of over-stamping should only be discussed with the agent on approval from Legal Services.
50.10 Conveyances to charities
Section 129 (1) of the Finance Act 1982 provides that where any conveyance, transfer, or lease is made or agreed to be made to a body of persons established for charitable purposes or the trustees of a trust so established or to the trustees of the National Heritage Memorial Fund, no stamp duty is chargeable on the instrument by which the conveyance, transfer, or lease, or the agreement for it, is effected, as from 22 March 1982.
Such instruments shall not be treated as duly stamped unless they are stamped with a stamp denoting that they are not chargeable with any duty.
50.11 Dispositions of licensed premises
Dispositions executed prior to 23 April 2002
The following paragraphs are taken from a circular, dated 16 December 1959, issued by the Inland Revenue for the guidance of solicitors:
In the case of a negotiated purchase of a licensed hotel or public house for a cumulo price covering heritage, goodwill and chattels, the stamp duty position is as follows:
There is authority for the view that the goodwill of licensed premises is in most cases wholly, or mainly, heritable and that in so far as it is heritable it passes to the purchaser by the disposition of the property whether it is expressly referred to in the disposition or not. However, in order to avoid the delay and inconvenience which is likely to arise if dispositions of licensed premises have to be lodged for adjudication of the stamp duty to enable an enquiry and valuation to be made by the District Valuer, it has been decided that where no special circumstances arise the case may be settled without adjudication on the basis explained below which concedes a measure of moveable or personal goodwill. In any dispute, of course, the facts would have to be determined.
(a) A disposition of the whole subjects of sale, i.e. premises, goodwill, and all moveable fittings, equipment, furniture etc., as detailed in the missives, is liable to ad valorem duty on the whole price agreed upon in the missives.
(b) a disposition of the premises and goodwill of the business without reference to corporeal moveables is charged with ad valorem duty on the total price agreed upon in the missives, less the part applicable to corporeal moveables.
(c) a disposition of the premises and of the ‘heritable goodwill’ or ‘goodwill of the business so far as heritable’ is chargeable with ad valorem duty on the price applicable to the premises and heritable goodwill.
(d) a disposition of the premises without any reference to goodwill is chargeable with ad valorem duty applicable to the premises and heritable goodwill.
A disposition in the form referred to in (a) and (b) above will be accepted for stamping immediately if it shows a consideration of 70% of the cumulo price shown in the missives. As an alternative, to meet the case of larger hotels and other licensed premises with valuable furnishings and moveable equipment, the part of the price applicable to corporeal moveables may first be deducted and ad valorem duty will then be accepted on a consideration representing not less than 75% of the balance. In such a case, the applicant must be prepared to justify the price allocated to corporeal moveables, for example, by producing an inventory, or an independent valuation.
This method of assessment concedes an element of moveable goodwill and is designed to ensure that duty is paid on a reasonable figure while avoiding the delay of enquiring in every individual case. It has no legal force as an apportionment of the price. The appropriate certificate of value to be inserted in the disposition is that based on the cumulo price (not on the 70% or 75%) less only the part of the price attributable to corporeal moveables (or ‘goods, wares and merchandise’) (See sections 34(1) and (4) of the Finance Act 1958).
The position in respect of missives is unchanged. Missives of sale of licensed premises and the licensed business carried on therein remain liable to conveyance on sale duty on the consideration attributable to goodwill.
Dispositions executed on or after 23 April 2002
With effect from 23 April 2002, all transfers of goodwill will be exempt from stamp duty. The most common situation that may be encountered involving goodwill is in dispositions of licensed premises where an apportionment of the purchase price is made between the heritable property and goodwill. Only the part allocated to heritage will be liable to ad valorem stamp duty, under the proviso that the apportionment must be just and reasonable. In most cases the deed will have been stamped but in the unlikely scenario of an apportionment in the disposition reducing the element of the purchase price liable to stamp duty below the threshold of £60000, the usual certificate of value will suffice.
In cases of doubt the deed can be referred to the Stamp Office.
50.12 Receipts endorsed on duly stamped writs
A receipt endorsed or otherwise written upon or contained in any instrument liable to stamp duty, and duly stamped, acknowledging the receipt of the consideration money therein expressed, or the receipt of any principal money, interest, or annuity thereby secured or therein mentioned is exempt from stamp duty.
50.13 Purchase of building plots
The Agency has been informed by the Inland Revenue that, where a builder has transacted to sell land and buildings under separate contracts, they are treated as a single transaction for stamp duty purposes. This type of transaction appears to be restricted to Wimpey Homes and associated companies. The Inland Revenue will accept as a basis for stamp duty, the price paid for the plot of ground plus the value of buildings, at the date of execution of the instrument of conveyance. For practical purposes, the date of execution of the instrument means the date upon which it was delivered to the purchaser’s agents, not the date upon which it was signed. This was previously dependant on the state of play at the time of completion of missives.
When an application contains such a deed for registration, it should be accompanied by a Wimpey certificate (or copy certificate) showing the value of the plot and the value of the partially erected buildings as at the date of the execution of the deed. Certificates must be produced and remain with the deed but need not be fiched. The Agency will accept the aggregate amount in the certificate as the basis for stamp duty, read along with the in gremio stamp clause without reference to the Inland Revenue. If exigible stamp duty has not been paid, however, the deed should be dealt with under normal arrangements.
Although this practice came into effect on 10 August 1993, it applies to documents executed (delivered) under agreements which were dated on or after 12 July 1993.
50.14 Statutory exemptions from stamp duty
There are a number of statutes which allow an exemption from stamp duty in specified circumstances. If legal examiners are unsure whether or not an exemption applies, the case should be referred to a senior caseworker for clarification.
The following is a list of Acts detailing further exemptions from stamp duty. Further details can be obtained from the Agency’s legal library.
(a) Church Building Act 1822 (c.72) : section 28
(b) Naval Agency and Distribution Act 1864 (c.24) : section 16
(c) Consecration of Churchyards Act 1867 (c. 133) : section 6
(d) The Finance Act 1946 (c.64) : section 50(c)
(e) National Heritage Act 1980 (c.17) : section 11
(f) Industry Act 1980 (c. 33) : section 2(2)
(g) Finance Act 1981 (c. 35) : section 107
(h) British Telecommunications Act 1981 (c. 38) : section 81
(i) Civil Aviation Act 1982 (c. 16) : section 59(2)
(j) Bankruptcy (Scotland) Act 1985 (c. 66) : section 25
(k) Insolvency Act 1986 (c. 45) : sections 190 and 378
(l) Finance 1987 (c. 16) :
section 5(1)
The provisions apply to any instrument executed on or after 1
August 1987.
(m) National Health Service and Community Care Act 1990(c. 19) : section 61(3)
(n) Social Security Administration Act 1992 (c. 5) : section 188
(o) Further and Higher Education (Scotland) Act 1992 (c. 37) : section 58
(p) Museums and Galleries Act 1992 (c. 44) : section 8(2) and (3)
(q) Finance Act 1993 (c. 34) - regarding rent to loan –Scotland – section 203 (1), (2) and (3)
(r) Coal Industry Act 1994 (c. 21) : sections 26, 27 and 28
(s) Health Authorities Act 1995 (c. 17) : schedule 2 section 4(1)
(t) Merchant Shipping Act 1995 (c. 21) : section 221 and schedule 9
(u) Environment Act 1995 (c. 25) : section 119
(v) Atomic Energy Authority 1995 (c. 37) : sections 8, 23, 24 and 25 and schedule 3
(w) Limited Liability Partnerships Act 2000 (c. 12) : section 12
Any question of refunding stamp duty due to over-payment is one between the agent and the Inland Revenue only. The Keeper can have no involvement. Any suggestion of re-recording or re-registering an already recorded/registered deed will not be entertained.
If the stamped deed has entered the Books of Council and Session, it will have been transmitted to the Keeper of the Records by the time that any application for refund is made. Once again, the Keeper is not involved.
Although writs held in the Land Register can be released, this should be to the agent to deal with the Inland Revenue direct. Writs should not be released direct to the Inland Revenue by Agency staff.
Guidance has been issued by the Inland Revenue in respect of excambions where the contracts were entered into on or after 30 Nov 1993. The guidance relates to:
50.16.1 Exchanges and equalisation (equality) payments
The 1994 Finance Bill introduced new rules for stamp duty on exchanges of interests in land or buildings. Under the new rules duty is charged upon each transfer. Where the consideration consists of property, its open market value will be taken as the consideration. For example, when a house worth £100,000 is exchanged for another also worth £100,000, stamp duty is charged at 1% on each side of the exchange. The £60,000 threshold is applied separately to each side. Thus if the value of one property is less than £60,000 and the appropriate certificate is endorsed upon the deed, then the instrument would not be liable for stamp duty in relation to the transfer of that property.
50.16.2 Equalisation (equality) payments
Where the market values of the two properties being exchanged are not equal, a payment of money may be given with the lower value property, so as to equalise the bargain. The treatment of such cases for stamp duty purposes will depend upon the facts and the effect of the relevant documents. Generally, where a new house is exchanged for a house worth £80,000, plus equality payment of £20,000, stamp duty liability for the part of the exchange dealing with the new house will be based upon £100,000. In respect of the house with a value of £80,000, where it is clear from the documentation that the old house has been transferred for the new house less the equality money of £20,000, the liability will be based on £80,000.
If there is a multiple exchange, for example, properties A and B are exchanged for property C, the transfer of properties A and B would be regarded as parts of a larger transaction. The £60,000 stamp duty threshold would not apply to either of them if the total consideration for both were more than £60,000. The threshold would apply separately to the transfer of property C.
In some cases when a person offers a property for sale, he may receive the price from the buyer in the form either of money or partly of money and partly of the buyer's existing house. To take a typical example, a builder selling a £100,000 house may receive the price from the buyer in the form of the buyer's old house worth £70,000 plus £30,000 in cash. The cash price may also be called an equalisation payment. Stamp duty is charged on the consideration for the sale. Thus stamp duty liability would be based on £100,000, in respect of the transfer of the new house stamp duty. The transfer of the house to the builder is not regarded as a separate sale for the purposes of stamp duty purposes, and is thus not chargeable to duty ad valorem. It is liable to a fixed stamp of £5. When the exchanged house is subsequently re-sold by the builder any stamp duty will be based on the price paid at that time.
Often when assessing deeds arising from transactions that may be excambions, or may be counter dispositions, the Inland Revenue may examine the missives to decide what they consider the true intention of the parties. Therefore where the Stamp Office has examined an excambion or counter disposition, and stamped the same, it should be unnecessary to enquire further. However, in cases of doubt, the deed can be referred to the Stamp Office as normal.
50.17 Stamp duty on discount sales
Section 107 of the Finance Act 1981 provides that in sales of property at a discount, by any of the organisations listed below, the discount shall not be taken as part of the consideration for stamp duty purposes:
The consideration narrated in the deed is taken to be the amount chargeable without any further enquiry required, provided the deed has been executed after 23 March 1981.