Stamp Duty Land Tax (SDLT) Latest News
Our SDLT section is currently under review. Please use the HMRC website for SDLT information until further notice.
Stamp Duty Threshold Reverts to £125,000 for residential property
The Stamp Duty Land Tax threshold for residential properties reverts to £125,000 for transactions with an effective date (usually date of entry or date of settlement) of 1 January 2010 or later.
This does not alter the Keeper's requirements. In terms of section 79(1) of Finance Act 2003 there is an obligation on the Keeper not to accept an application for registration which is not accompanied by an SDLT certificate where this is a notifiable transaction. An SDLT 5 certificate continues to be required for all transfers of property where the consideration is £40,000 or greater.
The threshold for commercial property remains at £150,000
For full details refer to http://www.hmrc.gov.uk/sdlt/reliefs-exemptions/no-sdlt-return.htm
Penalties arising from the recent issues with online filing
The recent issues with the online filing system may have prevented some customers from filing their land transaction returns on time.
As you may know, the Stamp Taxes core system generates penalty notices if returns aren’t received within 30 days of the effective date of a transaction (whether returns are filed online or on paper). The notices are issued automatically but, in cases where this disruption has prevented online returns being sent within the deadline, HMRC will look favourably on appeals against penalties – so long as returns were filed as soon as possible after the online service was back to normal.
To reduce the additional work that this will cause when customers receive a penalty notice, HMRC have introduced a process so that customers affected by the recent online issues can call the Stamp Taxes Helpline (0845 603 0135) to register their appeal against the penalty.
Customers will be asked to provide the following details:
- their name & phone number
- the reference number used to submit the return
- any other reference numbers used when trying to submit online
- date(s) of attempts to submit online
- purchaser’s address / name
- 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.
These will then be passed to the Finance team in Birmingham Stamp Office who will advise of the outcome of the appeal in writing.
’Solicitors are reminded .of the personal presentation and urgency service provided by the Edinburgh Stamp Office. An application will only be processed by the Edinburgh Office where there has been a delay of 10 days in receiving an SDLT Certificate.
Edinburgh Stamp Office
68 Queen Street
Edinburgh EH2 4NF
DX 543303 Edin 33
Tel: 0845 603 0135
FAX: 0131 528 3833
There is a 2 day personal presentation service and urgency service (where SDLT5 is not received within 10 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.
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 later extended to 31 December 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.
Further details of the Budget changes can be accessed at www.hmrc.gov.uk/budget2008/index.htm
The Stamp Duty Land Tax FAQs will be updated Shortly.
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:
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
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Penalty and Interest Appeals Process the SDLT 46
SDLT Rates
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SDLT Forms - Including Guidance on completion of forms
Guidance on Legislation
