HMRC SDLT: Guidance for Completing SDLT Forms: Question 26 on Number of Properties

Guidance for Completing SDLT Forms: Question 26 on SDLT1

This section provides guidance on answering question 26 of the SDLT1 form, which requires specifying the number of properties involved in a transaction. This includes separate chargeable interests, plots of land, or interests to be registered. The number of properties affects the number of certificates issued if requested. The guidance includes examples and instructions for linked transactions and handling multiple registered titles.

  • Question 26 on SDLT1 requires the number of properties to be specified.
  • Include separate chargeable interests, plots of land, or registered interests.
  • Use figures only, e.g., 2 not TWO.
  • Examples provided for single and multiple property transactions.
  • Guidance on linked transactions and separate SDLT forms.
  • Instructions for handling multiple registered titles.

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Guidance for Question 26 on SDLT1 Forms

This guidance focuses on how to answer question 26 on the SDLT1 form, known as the Stamp Duty Land Tax (SDLT) return form. This question is mandatory, meaning you must provide an answer when completing your form.

What to Include in Question 26

In question 26, you need to specify the number of properties involved in the transaction. The properties can be:

  • Separate chargeable interests: These are distinct legal interests in the property.
  • Separate plots of land: Different pieces of land that are being dealt with in the transaction.
  • Separate interests to be registered: Different interests that must be registered with the Land Registry.

The information you provide here influences how many certificates you receive if requested, as indicated in question 27. It is important to only use numbers and avoid spelling them out. For example, you should enter ‘2’ instead of ‘TWO.’

Examples of Property Transactions

Here are some examples to clarify how to complete question 26:

  • Single Property Transaction: If you are transferring a freehold or lease of one building or plot of land, you would enter ‘1.’ For instance, if you are selling a single office building, report this as ‘1.’
  • Multiple Properties from One Farm: If three different pieces of land from Home Farm are sold as part of one transaction, treat this as three separate properties. You would answer ‘3’ in question 26. For this scenario, when completing the SDLT3 form for paper notifications, you need to fill out a separate SDLT3 for each of the other two properties. However, when the sale involves a freehold subject to leases for the same three areas of land, fill out an SDLT4 for each additional property.
  • Linked Transactions: If you have multiple linked transactions, where you are using one SDLT1 form and supplementary forms for transactions of the same type, indicate the total number of properties involved across all linked transactions in question 26. If each linked transaction has its own SDLT1 form, only report the number of properties for that specific transaction.
  • Multiple Registered Titles: If your transaction includes more than one registered title, you will either need separate certificates for each title or provide a list that includes all titles. Each title must be clearly identified. The first title will be recorded on the SDLT1, specifically in questions 28 to 33. For additional titles:
    • If question 2 is marked as ‘F’ (for freehold) or ‘O’ (for other), use SDLT3 forms for questions 1 to 9 for subsequent titles.
    • If question 2 is ‘A’ (for assignment) or ‘L’ (for lease), subsequent titles should be reported on SDLT4 forms, in questions 8 to 14.

Important Notes

It is essential to be precise in your reporting. Each property must be counted separately, and you must clearly specify each one when necessary. Whenever you are unsure about how to complete a specific section of the form or need to clarify the requirements related to multiple properties, refer back to the precise definitions and examples shown here.

Additional Considerations for Completing SDLT Forms

While filling out the relevant SDLT forms, keep the following principles in mind:

  • Ensure accuracy: Double-check the number of properties you report and make sure it matches the actual number involved in the transaction.
  • Be thorough: When dealing with multiple properties, complete the necessary supplementary forms as required for each additional property.
  • Follow guidance: Adhere closely to the requirements outlined in the SDLT guidance to avoid delays or issues with your transaction.

Fulfilling the requirements for completing SDLT1 forms correctly ensures that the necessary taxes are processed smoothly and efficiently. If there are complexities or unique situations in your property transactions, consider seeking professional advice to navigate the requirements accurately.

Common Types of Property Transactions

Here are some common scenarios where you might have different buildings or plots in a single SDLT transaction:

  • Commercial Property Sales: In a situation where a shopping centre consisting of several units is sold, if there are separate freehold titles for each unit, each unit would count as a separate property.
  • Residential Developments: If a developer is selling a number of flats in a block, each flat would be regarded as an individual property for the purpose of the SDLT1 form.
  • Agricultural Land Sales: If a farm is being sold in parts, each distinct piece of the farm would be treated as a separate property, potentially requiring separate forms for jurisdictional purposes.

By being clear and exact about how many properties are involved in your transaction, you help facilitate a smoother processing of the Stamp Duty Land Tax. Keep documentation and correspondence handy, ensuring all aspects of your submissions are clear and well-supported by facts.

In cases of special circumstances or unique property deals, it may be valuable to keep records of discussions and decisions made, especially when interpreting complex property arrangements. This will assist you in future transactions as well as provide evidence of your compliance with SDLT requirements.

Final Reminders for Property Transactions

As you prepare to submit your SDLT1 form, remember:

  • Confirm the number of properties being acquired or leased.
  • Be prepared with additional schedules and forms if multiple titles or interests are involved.
  • Keep copies of all submitted forms for your records.
  • Utilize available resources or seek professional help in case of uncertainties regarding your SDLT obligations.

Following these instructions carefully will help ensure that you complete your SDLT submission accurately and in accordance with HMRC guidelines.

Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: Guidance for Completing SDLT Forms: Question 26 on Number of Properties

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Written by Land Tax Expert Nick Garner.
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