SDLT ― administration

Produced by Tolley in association with Grant Thornton's stamp taxes team

The following Corporation Tax guidance note Produced by Tolley in association with Grant Thornton's stamp taxes team provides comprehensive and up to date tax information covering:

  • SDLT ― administration
  • Is the transaction notifiable?
  • Filing and payment deadline
  • SDLT returns
  • Who is the purchaser?
  • Interest and penalties
  • Interest
  • Late filing penalties
  • Incorrect returns
  • Amendment of the SDLT return
  • More...

SDLT ― administration

Stamp duty land tax (SDLT) was introduced for land transactions with effect from 1 December 2003. Whereas stamp duty was a tax on documents, SDLT is a tax based on the acquisition of a chargeable interest, whether or not evidenced in writing.

When it was originally introduced, SDLT applied to all UK land transactions. Devolution has resulted in Scotland and Wales introducing their own regimes.

From 1 April 2015, land and buildings transaction tax (LBTT) applies to land transactions in Scotland. For details of LBTT, see Sergeant and Sims on Stamp Taxes AA12–AA22 (SSSD, AA[AA351]–SSSD, AA[AA862]). See also the guidance on the Revenue Scotland website.

From 1 April 2018, land transaction tax (LTT) applies to land transactions in Wales. For details of LTT, see Sergeant and Sims on Stamp Taxes AA23–AA34 (SSSD, AA[AA901] – SSSD, AA[AA2115]). See also the guidance on the Welsh Revenue Authority website.

Whilst the underlying rules applying to LBTT, LTT and SDLT are broadly similar in nature, the taxes are not identical. The rest of this guidance note covers the law that applies to transactions in England and Northern Ireland.

This guidance note considers the administration of SDLT for companies. For details of how to determine the chargeable consideration, the rate of SDLT that applies and the various SDLT reliefs available, see the Stamp duty land tax ― basic rules for companies and Stamp duty land tax ― basic rules for companies ― tax rates guidance notes.

Is the transaction notifiable?

The general rule is that an SDLT return (also known as a land transaction return) should be submitted to HMRC where the chargeable consideration for the acquisition (other than rent) is £40,000 or more. Where the transaction is the grant of a lease of seven years or more, notification is also required if the annual rent is £1,000 or greater.

There are some instances where there is no requirement to submit a land transaction return. These include the following:

  1. the grant

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