STAMP
DUTY LAND TAX (SDLT)
LATEST NEWS
No barcoded SDLT returns accepted from 1 November 2008
From 1 November 2008 no SDLT returns with barcodes (generated by some commercial software products and the HMRC CD-ROM) will be accepted. Any received after that date will be returned by HMRC with a rejection letter, explaining that the return is no longer valid. The letter will ask you to re-submit, using either online filing, or a ‘green & white’ paper return. To avoid any penalty or interest charges, you should provide the information needed and re-submit the return within the 30 day limit.
Click Here for more information
SDLT Holiday
The Chancellor of the Exchequer has announced that from 3rd September he will introduce a temporary holiday (“exemption”) from Stamp Duty Land Tax (‘SDLT’) for acquisitions of residential property worth not more than £175,000.
The exemption will be available where the effective date of the land transaction (normally the date of settlement) is on or after 3rd September 2008 and before 3rd September 2009. For that period the threshold for payment of SDLT has been raised from £125,000 to £175,000.
The exemption does not alter the requirement for solicitors and their clients to complete and submit a Land Transaction Return to HM Revenue & Customs. As such the change to the SDLT threshold does not affect the obligation contained in section 79(1) of Finance Act 2003 to present a SDLT certificate along with appropriate deeds/applications for registration or recording. All deeds/applications which currently require an SDLT certificate will continue to require such a certificate.
See the SDLT FAQs for further information
Stamp Duty Land Tax: New evidential requirements -Update on Budget Changes
The 2008 Budget introduced a number of changes to the SDLT requirements with the aim of reducing the administrative burden relating to SDLT.
HMRC has confirmed that the requirement to complete an SDLT 60 has been abolished for all for non-notifiable transactions with an effective date on or after budget day (12 March 2008).
The recent changes have also widened the criteria for non notifiable transactions to include all transfers where the consideration is for less than £40,000. This threshold applies to both commercial and residential property. There are also changes to the requirements for leases.
Accordingly an application for registration in the Land Register or recording in the General Register of Sasines in respect of a disposition for either commercial or residential property for a consideration of less than £40,000, or any application for registration of any other deed that is non notifiable in terms of SDLT legislation will no longer require to be accompanied by an SDLT 60 certificate or any other certificate.
Non notifiable transactions include deeds defined in the legislation as "not major interests in land" such as servitudes, grants of liferent interests etc where the consideration is below the threshold for payment of SDLT - currently £125,000 for residential property and £150,000 for commercial property. Transactions exempt in terms of Schedule 3 of the Finance Act 2003 also continue to be non notifiable. These deeds therefore no longer require to be accompanied by an SDLT60 or any other HMRC Certificate.
Transactions involving leases for a term of 7 years or more will only have to be notified to the Revenue where any chargeable consideration other than rent is more than £40,000 or where the annual rent is more than £1,000. Where notification to HMRC is not required, an application to record the lease will not require to be accompanied by any SDLT certificate.
These changes take effect for transactions with an effective date of 12 March 2008.
An SDLT5 will continue to be required by the Keeper where the transaction is notifiable to HMRC.
New process for transactions with more than 100 properties
The online service can only accept transactions of up to 99 properties. HMRC want to extend this, but know that an IT solution is at least 12 months away. In the meantime, they are introducing a new process which they hope will encourage even more people to use online filing.
The new process is:
- First, complete the online return for the first 99 properties
- Then submit a schedule to
Birmingham Stamp Office, by email to: shujina.bibi@hmrc.gsi.gov.uk (this email address is not available on the website for security reasons) for only the properties that exceed 99.
There is no ‘template’ for this schedule – just ensure that all the relevant information is given.
Details are on our website at www.hmrc.gov.uk/so/transactions-100.htm (apart from the email address) and full details will be in Issue 21 of Practitioners’ Newsletter.
Click
here to access the revised SDLT 60 and Click
here to access the Guidance Notes.
The Keeper cannot accept applications accompanied by a copy or certified
copy SDLT5.
Edinburgh Stamp Office
Grayfield House
Spur
X
5 Bankhead Avenue
Edinburgh
EH11 4BF
FAX: 0131 442 3038
There is a 2 day personal presentation service and urgency service
(where SDLT5 is not received within 16 days) provided at the Edinburgh
Office for Scottish purchases only. Agents requiring this service
should fax details to the above fax number. Where the 2 day personal
presentation conditions apply to a transaction involving both English
and Scottish properties HMRC may also be able to assist in relation
to the Scottish properties.
Click
here to visit our SDLT FAQs
Click
here to view Registers Update 11 'SDLT' published in November 2003
USEFUL
LINKS TO HMRC STAMP TAXES WEBSITE
Stamp
Taxes website
Stamp
Taxes Online
News
from HMRC
HMRC
- Practitioners Newsletters
HMRC
- Technical Newsletters
Service
issues
Penalty
and Interest Appeals Process the SDLT 46
SDLT
Rates
SDLT
Calculator
SDLT
Forms - Including Guidance on completion of forms
Guidance
on Legislation
