Read the original guidance here:
HMRC SDLT: Guidelines for SDLT Agent Authorisation and Repayment Procedures with Letter Templates

Processing: Letters of Authority

Understanding Letters of Authority in SDLT

When dealing with Stamp Duty Land Tax (SDLT) matters, it’s important to know how to communicate and authorise agents correctly. A letter of authority is a crucial document that allows a different agent to act on behalf of the purchaser or purchasers in certain situations. Here’s what you need to know:

Who Can Discuss SDLT Matters?

– SDLT matters cannot be discussed with any agent other than the one listed in the SDLT return.
– If you want to allow a different agent to represent you, this can only occur once a letter of authority has been submitted.
– The letter of authority needs to be signed by the purchaser or all purchasers in the case of joint purchases.

Repayments and Letters of Authority

If an agent, who is named on the SDLT return, wants to request a refund of SDLT on behalf of the purchaser, they must also have a letter of authority. This letter ensures that:

– The purchaser or each purchaser (for joint transactions) agrees to the refund being sent directly to that agent.
– The letter must be signed by the purchaser(s) and submitted before any repayment process takes place.

Creating a Letter of Authority

If you need a template for a letter of authority, you can find one available for download at SDLTM61510. Use this template to ensure you provide all necessary information.

Key Points to Remember

– Always submit a letter of authority if you want a different agent to discuss SDLT matters on your behalf.
– Make sure the letter is signed by the purchaser(s) and submitted before any actions, like refunds, are processed.
– Use the official template to maintain the correct format and ensure comprehensive information is provided.

Example Situations

Here are a couple of situations to illustrate the use of letters of authority in practice:

1. Changing Your Agent:
– Suppose you’ve filed an SDLT return through Agent A, but decide you want Agent B to handle subsequent correspondence. You will need to provide a signed letter of authority from all purchasers to allow Agent B to discuss SDLT issues.

2. Requesting a Refund:
– Imagine Agent A has submitted an SDLT return but later determines that a refund is due. If Agent A wants the refund to be sent directly to themselves rather than to the purchaser, then a letter of authority must be signed by the purchaser(s) authorising this arrangement.

These examples underline the necessity of a letter of authority to facilitate communication and transactions concerning SDLT.

Final Notes on SDLT and Agents

Ensure any letter of authority accurately represents the intent and agreement of the purchaser(s). It should clearly state that the named agent is allowed to perform the specific actions, whether it’s discussing SDLT matters or receiving repayments.

Remember, having clear and well-documented authorisation helps to avoid misunderstandings and delays in processing SDLT-related requests.