HMRC SDLT: SDLTM31400 – Application
Principles and Concepts of SDLTM31400 – Application
This section of the HMRC internal manual provides guidance on the SDLTM31400 application process. It outlines the principles and concepts necessary for understanding and implementing the application effectively. Key points include:
- Detailed procedures for submitting applications.
- Criteria for eligibility and compliance.
- Required documentation and evidence.
- Timelines and deadlines for application processing.
- Contact information for further assistance and queries.
Read the original guidance here:
HMRC SDLT: SDLTM31400 – Application
Companies: Unit Trust Schemes
This section explains how the trustees of a unit trust scheme are considered to function like a company when dealing with stamp duty land tax. This applies specifically when a unit trust scheme acquires land. For more detailed guidance, refer to SDLTM30200+.
Group Relief and Other Exceptions
There are exceptions to the standard rules regarding stamp duty land tax when it comes to certain reliefs. These include group relief, reconstruction relief, and acquisition relief as set out under FA03/SCH7.
Understanding Unit Holders
The rights of unit holders in a unit trust scheme are similar to shares in a company. This means:
- The creation, withdrawal, and transfer of units within the trust are not subject to stamp duty land tax.
- These actions remain subject to stamp duty reserve tax instead.
A unit trust scheme is defined within the framework of the Financial Services and Markets Act 2000. A unit holder refers to anyone who has the right to a portion of the investments held by the trust.
What is an Umbrella Scheme?
An umbrella scheme is a specific type of unit trust scheme that allows separate pools of contributions from participants. In such schemes, profits or income generated are allocated for payments. Participants in an umbrella scheme have the option to exchange their rights between different pools.
In an umbrella scheme, each part operates as an independent unit trust. Consequently, the entire umbrella scheme is not considered as a single unit trust for the purposes of stamp duty land tax. Therefore:
- If a part of an umbrella scheme acquires land, that specific part is treated as its own separate unit trust scheme.
- The trustees of this specific part are treated as a company according to FA03/S101(1)(a).
Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: SDLTM31400 – Application
I am here to help. I offer free expert advice to help you understand your land tax obligations, rights, and entitlements.
