Stamp duty land tax administration

By Tolley
OMB_tax_img6

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. Usually the solicitor or conveyancer working on the property transaction will be engaged to file SDLT returns and arrange payment of SDLT to HMRC.

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. For details of the administration of LBTT, see the Revenue Scotland website .

Scotland Act 2012, ss 28, 29, Sch 3; Land and Buildings Transaction Tax (Scotland) Act 2013

From 1 April 2018, land transaction tax (LTT) applies to land transactions in Wales. For details of LBTT, see Sergeant and Sims on Stamp Taxes AA23–AA34. For details of the administration of LTT, see the Welsh Revenue Authority website .

Wales Act 2014, s 15; Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017

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 administration of SDLT that applies to transactions in England and Northern Ireland. For a discussion of the SDLT regime, see the Stamp duty land tax guidance note.

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

More on Selling the family business: