In plain English, the HMRC’s advice regarding Stamp Duty Land Tax (SDLT) is that it’s a self-assessed tax. This means it’s the taxpayer’s responsibility to calculate and declare the correct amount of tax on their SDLT return. Once HMRC receives an SDLT return, their role is to verify the information provided.

They do this by conducting compliance checks on some returns, particularly when they suspect the declared tax amount might be insufficient. However, HMRC will not conduct compliance checks simply because a taxpayer or their agent requests confirmation that the declared tax is correct.

Importantly, unless a compliance check is initiated, HMRC will not provide advice, offer opinions on the tax treatment of a transaction, or confirm the correctness of the received return.

Given this context, this is where agencies like us, the Stamp Duty Advice Bureau, come into play. Since HMRC does not provide advice or confirmations unless a compliance check is initiated, taxpayers often need assistance in understanding and correctly applying the rules of Stamp Duty Land Tax.

Our role is to help fill this gap. We provide expert advice, guiding you through the complexities of SDLT, providing the support that HMRC does not offer unless they’re conducting a compliance check.

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From HMRC:

Amendments, refunds and requests for advice after a Stamp Duty Land Tax (SDLT) return has been submitted.
Requests for advice & opinions after you’ve sent us an SDLT return and requests for
confirmation that the return you’ve sent us is right.

SDLT is a self assessed tax. This means that the relevant taxpayer is responsible for making
sure they work out and declare the right amount of tax on their SDLT return.

When we receive an SDLT return, our role is to check the information you’ve given us Is
right.

We do this by carrying out compliance checks into some returns where we think the amount
of tax which has been declared is not enough. We cannot carry out compliance checks
simply because the taxpayer or their agent wants us to confirm that the tax they declared is
correct.

So, unless we decide to carry out a compliance check we cannot:
– give advice
– give opinions on the tax treatment of a transaction
– confirm that the return we’ve received is right