| Electronic
Certificates |
| Q.
Will the Keeper accept an Electronic Submission Receipt / Electronic
SDLT5 |
| A.
From 1 November 2006 HMRC will produce an Electronic Receipt
or Electronic equivalent of the SDLT5 for all applications successfully
submitted online. This can be printed off and can be submitted
to the Keeper with an application for Registration. Third Party
Vendors are also producing versions of an electronic SDLT5 certificate.
These certificates must pass an HMRC recognition process before
they can be accepted by the Keeper. Click
here to access Successful Third Party Vendors and examples of
their products. These certificates will also be accepted
by the Keeper from 1 November. If an electronic SDLT5 runs to
more than one page, all pages must be submitted with the application
for registration. |
| |
| Q.
If an Electronic Certificate is submitted with an application
for Registration does the Keeper require to see the paper version
once it is received from HMRC |
| A.
HMRC will continue to issue paper SDLT 5 Certificates to every
applicant for whom a Return is made, be it on paper or on-line.
However the Keeper does not require to see these if an electronic
certificate has been accepted with the application for Registration.
The paper copy should be retained by the applicant or his agent |
| |
| Voluntary
Registration |
| Q.
Is a Self Certificate or Revenue certificate required when the
Keeper consents to voluntary registration of subjects in the
Land Register. |
| A.
When consenting to voluntary registration of a property, the
Keeper will not require to see either a Self Certificate or
a Revenue Certificate if there is no transfer of ownership of
the property being registered. If any part of the subjects for
which voluntary registration is sought is being transferred
then the Keeper will require the appropriate SDLT certificate.
|
| |
| Increase
in the 0% Rate Threshold for Residential Property to £120,000 |
| Q.
When does the increase in the SDLT threshold come into effect? |
| A.
The increase in the 0% rate threshold to £125,000 will
take effect for residential land transactions completed on or
after the 23rd March 2006. |
| |
| Q.
Is the increase in the 0% rate threshold retrospective? |
| A.
No, this measure is not retrospective. SDLT at 1% must be paid
on all transactions between £120,000 and £125,000
if the completion date was on or before the 23rd March 2005.
|
| |
| Q.
Will the increased threshold affect the evidence required by
the Keeper of the Registers of Scotland? |
| A.
No. The SDLT regime is a certification regime and the change
in the threshold does not affect the type of certificate required
by the Keeper. All residential transactions where the consideration
is in excess of £1000 (one thousand pounds) must be notified
to the Inland Revenue on the appropriate Land Transaction Return.
The Inland Revenue will issue a certificate that must accompany
any application for registration or deed for recording. |
| |
| Q.
If a house worth more than £125,000 is purchased will
the SDLT liability change? |
| A.
No, the structure of SDLT has not changed. As such, on consideration
paid between £125,000 and £250,000 the purchaser
will still pay SDLT on the entire value at 1%. The only change
will be to properties worth more than £120,000 and less
than £125,000, which prior to 23rd March incurred SDLT
at 1% and now incur SDLT at 0%. |
| |
| Erroneous
reference to Finance Act certificate or Exempt Instrument Regulations
certificate |
| Q.
What will the Keeper do if presented with a deed, accompanied
by the appropriate certificate, that erroneously includes a
Finance Act clause or reference to the Exempt instrument Regulations? |
| A.
The Keeper will not refuse to accept a deed for recording
or registration containing such a clause or reference provided
the deed is accompanied by the appropriate certificate in
terms of the Finance Act 2003. The reference in the deed to
the Finance Act or Exempt Instrument Regulations will be treated
as pro non scripto. |
| |
| Transfers
where consideration is between £1K and £60K |
| Q.
What is the appropriate Certificate where the purchase price
in a Disposition is between £1000 and £60000? |
| A.
Although no SDLT may be payable the transaction is one in which
a chargeable interest is acquired for a chargeable consideration.
Therefore a Land Transaction Return (SDLT 1 to 4 as appropriate)
should be submitted to the Inland Revenue and a Revenue Certificate
obtained. The Certificate should be submitted with the application
for registration. |
| |
| Transfers
where the consideration is under £1K |
| Q.
What is the appropriate Certificate where the purchase price
of the property is below £1000 |
| A.
Section 298(2)(b) of the Finance Act 2004 provides that subjects
which consist of property which is entirely residential and
the chargeable consideration, together with that of any linked
transactions, is less than £1,000 (i.e. £999.99
or less), is no longer a notifiable transaction. A self certificate
is therefor appropriate.
The
Inland Revenue have now produced a revised Self-certificate
(SDLT 60) and included a tick box for this category, but the
existing form can continue to be used until 16 April 2007.
If using the earlier version, Solicitors should write on the
Self certificate that the transaction is residential and is
for consideration of under £1000.
NB If the subjects are other than residential property then
a Revenue Certificate should be obtained. |
| |
| Transfers
where no consideration passes |
| Q.
What Certificate is required when a Disposition is for no consideration? |
| A.
A conveyance for no chargeable consideration requires a Self-Certificate.
It is not a notifiable transaction in terms of Section 77(3)
of the Act. |
| |
| Transfers
for certain good and onerous causes |
| Q.
What is the appropriate certificate in relation to a disposition
which narrates the consideration as "good and onerous causes"? |
| A.
If the disposition is granted for money or money's worth,
e.g. a transfer subject to an existing debt, then it is a
notifiable transaction and a Land Transaction Return (SDLT
1) should be submitted to the Inland Revenue and a Revenue
Certificate obtained and submitted with the application. |
| |
| Deeds
of Excambion |
| Q.
What is the appropriate Certificate for a Deed of Excambion? |
| A.
Deeds of Excambion where the property is entirely residential
and the consideration or value for both properties is less
than £1000 will require two Self Certificates. If the
value is greater than £1000 then the transaction is
notifiable and two revenue certificates are required. Similarly,
where part or all of the property is commercial two Revenue
Certificates are required. |
| |
| Notice
of Title and links in title |
| Q.
What certificate is appropriate in connection with a Notice
of Title or where an application is made to update the proprietorship
section other than following upon a sale? |
A.
A certificate will be required for a Notice of Title. Similarly,
where links in title are being submitted in order that the title
sheet may be updated in reliance thereon, a certificate of compliance
will also be required. Normally, Notices of Title are submitted
only to the Register of Sasines, although they may occasionally
be encountered in the Land Register, for example where title
is being completed following upon a compulsory purchase order.
This is an exception to the general rule in section 3(6) of
the 1979 Act.
In recording notices of title in the Register of Sasines, the
type of certificate which should accompany it will depend on
whether the links in title specified in the Notice of Title
were land transactions that required notification to the Revenue.
Occasionally a Notice of Title will be submitted to the Land
Register following on a Compulsory Purchase Order. If there
is valuable (and thus chargeable) consideration in respect of
the compulsory purchase in the form of compensation, the Keeper
would expect a Revenue certificate to accompany the Notice of
Title. If there is no valuable consideration a Self-certificate
would be appropriate. It is for the purchaser to determine which
certificate is appropriate. The Keeper will accept either type
of certificate without further enquiry.
It is not uncommon for links in title to be submitted for registration
in the Land Register as a dealing, for example where the link
in title is a docquet transfer. Where the link is being submitted
in order that the title sheet may be updated in reliance thereon
the Keeper will require a certificate of compliance in respect
of the link in title. The type of certificate will depend on
whether any consideration is passing. In most cases no consideration
will be passing. For instance if the transferee named in a docquet
should complete title, a self-certificate will be required.
The same is true for a Trustee in Sequestration taking title
under an Act and Warrant. Unless it is clear from the face of
the links in title that consideration is passing, the Keeper
will accept a Self-certificate without further enquiry. If it
is clear that there is an element of consideration passing the
appropriate certificate is a Revenue certificate.
Note: Where the links in title are being submitted in support
of an actual conveyance no certificate is required in respect
of the links in title. Rather a certificate will however be
required in respect of the actual conveyance. For example, if
the beneficiary/beneficiaries do not seek to update the title
sheet but utilise the docquet purely as a link in title (along
with the confirmation of executors) in conveying the property,
the Keeper will expect a Revenue Certificate for the sale transaction
when it is registered, and will not require any certificate
for the link in title. |
| |
| Transfers
to a beneficiary under a Will or on intestacy |
| Q.
What SDLT certificate is required when property passes to a
benefiiciary. |
| A.
The acquisition of property by a person in or towards satisfaction
of his entitlement under a will or on intestacy is an exempt
transfer in terms of Schedule 3 of the Act and requires a
Self Certificate. The transaction remains exempt even where
the beneficiary takes on a debt secured on the property. A
transaction following on the variation of a Will within two
years of the death of the testator is also exempt.
If any consideration is paid for the acquisition a Return
should be submitted to the Inland Revenue and a Revenue Certificate
obtained. If the property is entirely residential and the
consideration is less than £1000 the Keeper will accept
a Self-certificate. |
| |
| Application
to give effect to survivorship destination |
| Q.
What SDLT evidence does the Keeper require in connection with
an application to give effect to a survivorship destination? |
| A.
Where an application is made to update the Proprietorship
Section of the Title Sheet, to note the death of the proprietor
or to give effect to the operation of a survivorship destination,
the Keeper will not require sight of either a Revenue certificate
or a Self-certificate. |
| |
| Deed
of Conditions |
| Q.
Is a certificate required in connection with a Deed of Conditions? |
| A.
The Inland Revenue has advised that neither a Revenue certificate
nor a Self-certificate is required in respect of a Deed of Conditions. |
| |
| Transfers
to Government Departments |
| Q.
Is a certificate required in connection with a conveyance in
favour of a Government body? |
| A.
Although section 107 of the Finance Act 2003 provides for
certain Government bodies to be exempt from charge, the exemption
is a relief that has to be claimed on an SDLT1. It cannot
be self-certified. Code 18 in box 9 of SDLT1 claims the relief.
As such the Keeper will expect to see a Revenue certificate. |
| |
| Sub-sales |
| Q.
What certificates require to be submitted in connection with
a sub-sale? |
| A.
The provisions governing notification and certification of
sub-sales are contained in section 45(3) of the Finance Act
2003. That section provides that 'the substantial performance
or completion of the original contract at the same time as,
and in connection with, the substantial performance or completion
of the secondary contract arising from a subsequent transfer
of rights shall be disregarded.' What this means in practice
is that only one certificate is required, namely a certificate
in respect of the transfer by the sub-seller to the party
applying for registration or recording. The following examples
illustrate the operation of section 45(3);
Example 1: A concludes missives to sell to B for £100,000.
Before B takes title he concludes missives to sell to C for
£150,000, with the Disposition going direct from A to
C with the consent of B. In terms of section 45(3) the purchase
by B from A is not treated as a land transaction. Only the
purchase by C is. When the Disposition by A to C with consent
of B is presented for registration all the Keeper will require
is a Revenue Certificate in respect of the purchase by C.
No Revenue certificate will be required in connection with
B since the purchase by B is not a land transaction.
Example 2: A concludes a contract for the sale of a house
to B. B subsequently enters into a contract with C for sale
of the same property. The date of entry in both contracts
is the same. On the date of entry A grants a conveyance to
B in exchange for payment of the purchase price and B grants
a conveyance to C in respect of the purchase price. Only C
takes possession of the property. Both dispositions will be
submitted to the Keeper at the same time. Section 45(3) will
apply and the Keeper will only require to see a Revenue certificate
in connection with the Disposition conveying the property
from B to C.
In order that the Keeper is aware that sub-sale relief applies
to a deed or deed being presented for registration solicitors
are advised to append a covering letter to the Disposition
narrating that section 45(3) applies. Solicitors have been
further advised that it would also be of assistance if it
were noted on the front page of the accompanying application
form that the transaction is in respect of a sub-sale. |
| |
| Disadvantaged
area reliefs and other reliefs |
| Q.
Where a relief applies to the transaction what certificate is
required for the purposes of registration? |
| A.
Reliefs have to be claimed on the appropriate Land Transaction
Return. As such the Keeper will expect to see a Revenue certificate. |
| |
| Completion
of Self-certificate (SDLT 60) |
| Q.
Who should sign the Self-certificate? |
| A.
The Self-certificate must be signed by the purchaser. Where
there is more than one purchaser they all must sign. Signature
by an agent such as a solicitor is not acceptable except under
special circumstances , for instance where the solicitor has
been appointed as Attorney under a Power of Attorney. |
| |
| Photocopy
certificates |
| Q.
Is it acceptable to submit a photocopy of a Revenue certificate
or a Self-certificate? |
| A.
No. The original certificate must be submitted. Note: It is
permissable for a solicitor to photocopy blank Self-certificates
for subsequent completion by his or her client. The Self-certificate
submitted to the Keeper must however be the actual Self-certificate
signed by the purchaser. |
| |
| Q.
Does the Keeper require the latest version of SDLT 60 to be
submitted? |
| A.
HMRC have issued a new version of the SDLT 60 and also issued
revised Guidance Notes (SDLT 68). This form can be used from
17 April 2006. The previous version continues to be valid
if used before 16 April 2007. |
| |
| Assignation
of Leases |
| Q.
What Certificate is required for an Assignation of Lease |
| A.
An Assignation of lease for any consideration now requires
to be notified to the Inland Revenue and therefore requires
to be accompanied by a Revenue Certificate. The Inland Revenue
advise that rent payable by the new tenant does not count
as consideration. If no consideration is payable for the Assignation
it can be self certified.
NB: Where an Assignation contains a reverse premium no Certificate
is required. |
| |
| Partnership
deeds |
| Q.
What is the Inland Revenue's requirement where an interest in
a Partnership is transferred. |
| A.
There are special requirements for the transfer of property
and the transfer of an interest in a partnership. However
as a general rule the transfer of property into or out of
a partnership is subject to SDLT and the Keeper will expect
any such application to be accompanied by a Revenue Certificate.
Where an interest in a partnership is transferred between
partners (which may include the transfer of land) there are
special provisions and an SDLT 60 certificate may be appropriate.
The full requirements are contained in Schedule 15 Finance
Act 2003 as amended. |
| |
| Register
of Community Interests in Land |
| Q.
Do applications to Register of Community Interests in land require
to comply with the requirements of Section 79 of Finance Act
2003. |
| A.
In
terms of Section 298(3) of the Finance Act 2004 the Register
of Community Interests in Land the Keeper does not require
to examine either a Revenue or Self Certificate in respect
of applications to the Register of Community Interests in
Land. No certificate need been produced with applications
to this Register.
|
| |
| Deeds
constituting Real Burdens under the Title Conditions (Scotland)
Act 2003 |
| Q.
What certificate is required for a constitutive deed in terms
of the Title Conditions (Scotland) Act 2003? |
| A.
This will depend upon the type of deed you are using. If your
constitutive deed is a disposition (whether it is a conveyance
of the benefited property or the burdened property) then the
appropriate certificate should be submitted depending upon
the consideration passing: only if the consideration is less
than £1000 and the property conveyed is not commercial,
is a self-certificate appropriate. Otherwise, if the consideration
is between 1K and 60K, or over 60K then an Inland Revenue
certificate should be submitted. No separate certification
is required in respect of the constitution of the real burdens.
Where
the constitutive deed is a deed of conditions or deed of constitution
of real burdens, or an agreement declaring burdens affecting
one property in favour of another property, then the Keeper
does not require the submission of either an Inland Revenue
certificate or a self-certificate. |
| |
| Notices
under Title Conditions (Scotland) Act 2003 |
| Q.
What certificate is required for a section 50 Notice of Preservation
under the Title Conditions (Scotland) Act 2003 or a section
80 Notice of Converted Servitude under that Act? |
| A.
Neither an Inland Revenue certificate nor a self-certificate
requires to be submitted with the applications for registration
and/or recording of a Notice of Preservation or a Notice of
Converted Servitude. |
| |
| Q.
What certificate is required for a section 20 Notice of Termination
under the Title Conditions (Scotland) Act 2003? |
| A.
Neither an Inland Revenue certificate nor a self-certificate
requires to be submitted with the applications for registration
or recording of a Notice of Termination. |
| |
| Minutes
of waiver, discharges and variations of real burdens |
| Q.
What certificate is required for a waiver or discharge of real
burdens or discharge of a servitude? |
| A.
If consideration does not exceed the zero rate threshold (currently
£125,000 for residential property and £150,000
for commercial property) a self-certificate executed for or
on behalf of the proprietor or proprietors of the subjects
affected by the real burdens being waived or discharged, or
servitude being discharged, will be appropriate. If there
is consideration and this exceeds the zero rate threshold
an Inland Revenue certificate should be submitted. |
| |
| Deeds
of Servitude |
| Q.
What certificate is required for a Deed of Servitude? |
| A.
Where the consideration does not exceed the zero rate threshold
(currently £125,000 for residential property and £150,000
for commercial property) a self certificate executed for or
on behalf of the proprietor of the benefited property should
be submitted with the application for registration. If the
consideration exceeds the zero rate threshold then a certificate
from the Inland Revenue is appropriate. |
| |
| Land
transactions involving multiple properties |
| Q.
When making application to register land transactions involving
multiple properties should more than one Certificate be obtained?
|
| A.
Where a number of properties are transferred as part of the
one transaction the purchaser need only make one Land Transaction
return to the Revenue. Similarly if properties are transferred
as part of a series of transactions or a single scheme they
are described in Section 108 of the Act as linked transactions.
This does not mean that the purchaser will only receive one
Revenue certificate. Rather they have the choice to obtain
one certificate for each individual property.
The Keeper's guidance to the profession is that where a number
of properties are conveyed in one deed then only one certificate
with a schedule appended listing the properties is required.
If the properties are each to receive a separate title sheet,
intake staff will photocopy the certificate along with the
deed. Conversely if a number of properties are being conveyed,
each in a separate deed, a separate Revenue Certificate should
be obtained for each deed. |
| |
| Q.
Is it acceptable to submit a certified copy of a Certificate
and Schedule when there is a land transaction involving multiple
properties some of which are situated in Scotland and some outwith
Scotland? |
| A.
A certified copy Certificate and Schedule is not acceptable.
When dealing with Land Transactions involving properties in
Scotland and England, a separate Return and Schedule should
be requested for the Scottish properties. The Revenue will supply
a separate Return if requested to do so. |
| |
| Q.
Is it acceptable to submit an ElectronicRevenue Certificate
or SDLT 5 for registration of land transactions involving multiple
properties? |
| A.
It is acceptable to submit Electronic SDLT 5 certificates for
registration of land transactions involving multiple properties
provided that where one certificate is being submitted for a
number of properties there is attached either (a) a schedule
listing the properties for which registration is sought or (b)
in the case of an electronic SDLT5 issued by HMRC it is accompanied
by copies of the Return submitted to HMRC listing the properties
for which registration is sought. |
| |
| Land
Transactions with more than two grantors or grantees |
| Q.
Will the Keeper accept a Revenue Certificate showing only two
vendors or purchasers when there are more than two granters
or grantees in the accompanying disposition? |
| A.
The Revenue Certificate is designed to show up to two vendors
or purchasers and therefore the Keeper accepts that in such
cases not all vendors and purchasers will be disclosed on the
accompanying SDLT Certificate. The Revenue have advised that,
when submitting a Return an SDLT2 supplementary return should
accompany an SDLT1 when there are three or more vendors or purchasers. |
| |
| SDLT
Requirements for Compulsory Purchase Orders and General Vesting
Declaration |
| Q.
Does the Keeper require a Revenue Certificate with a Compulsory
Purchase Order (CPO) and General Vesting Declaration (GVD)? |
| A.
Where a CPO and GVD are presented together or when a GVD is
presented on its own, the Keeper will require one Revenue Certificate.
If a Compulsory Purchase Order is presented for registration
and not accompanied by a GVD no Certificate is required. |
