Stamp duty land tax administration

By Tolley
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The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Stamp duty land tax administration
  • Returns
  • Payment of tax
  • Interest
  • Penalties

The administration system for stamp duty land tax (SDLT) is carried out using a self-assessment form. The details are contained in Finance Act 2003. Usually the solicitor or conveyancer working on the property transaction will be engaged to file SDLT returns and arrange payment of SDLT to HMRC.

In Scotland, SDLT has been replaced by the Land and Buildings Transactions Tax (LBTT), legislated primarily by the Land and Buildings Transaction Tax (Scotland Act 2013) (subscription sensitive). See Revenue Scotland  for further detail.

In Wales, from 1 April 2018, SDLT has similarly been replaced with the land transaction tax (LTT). See the Welsh Government guidance  for further detail.

Returns

A purchaser of land is obliged to make an SDLT Return, and pay any SDLT due, within 14 days of the effective date of the transaction. This applies from 1 March 2019; prior to this date, the purchaser had 30 days to file the Return and pay the SDLT due. The Return can be filed online using the HMRC Stamp Taxes Online  service (although unrepresented taxpayers must send a paper SDLT Return).

FA 2003, ss 76–77A, 86; FA 2019, s 46

If you wish to submit a paper copy of the Return you can still do so, although you will need to order one from HMRC . Note that from 1 October 2014, any paper SDLT Return must include a valid Local Authority number, otherwise it will be rejected. To find the relevant Local Authority number, see SDLTM62320.

The land transaction return must include a self-assessment of the tax chargeable and be accompanied by payment of the amount chargeable.

FA 2003, s 76

Notifiable transactions include:

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