HMRC SDLT: SDLTM29690 – Reliefs

SDLTM29690 – Reliefs – HMRC Internal Manual

This section of the HMRC internal manual provides detailed guidance on reliefs related to SDLT (Stamp Duty Land Tax). It outlines the principles and concepts applicable to various reliefs, ensuring compliance with tax regulations.

  • Explains the eligibility criteria for SDLT reliefs.
  • Describes the application process for obtaining reliefs.
  • Details specific scenarios where reliefs may be applicable.
  • Includes examples to illustrate how reliefs are calculated.

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Read the original guidance here:
HMRC SDLT: SDLTM29690 – Reliefs

Lighthouse Transactions and Tax Relief

Understanding the Exemption

If a transaction is carried out by general lighthouse authorities, such as:

– Trinity House
– The Commissioners of Northern Lighthouses
– The Commissioners of Irish Lights

these transactions can be exempt from certain tax charges. This exemption applies when these authorities conduct a land transaction that supports services funded by the General Lighthouse Fund.

What is the General Lighthouse Fund?

The General Lighthouse Fund is a financial plan used to support various lighthouse services. These services are essential for the safety of maritime navigation and ensure that lighthouses and other aids to navigation are well-maintained and operational.

How to Claim the Relief

To claim this exemption on tax for transactions that qualify, you will need to include specific information in the land transaction return. Follow these steps:

1. Complete your land transaction return.
2. At question 9 of the return, enter the code 28 in the section designated for “Other reliefs.” This indicates you are claiming exemption based on the relevant legislation.

Example of the Exemption in Action

Let’s consider a scenario where Trinity House buys land for a new lighthouse. Since this transaction is made for the purpose of supporting maritime safety under the General Lighthouse Fund, it is exempt from tax charges. When filling out the land transaction return, Trinity House would enter code 28 to claim this relief.

Conditions for Relief

Relief under this section applies specifically when:

– The transaction is made by or under the direction of the designated lighthouse authorities.
– The purpose of the transaction aligns with the supporting services funded by the General Lighthouse Fund.

It’s important to ensure that all conditions are met before claiming this relief to avoid any issues with HMRC.

Consequences of Not Claiming Relief

If a qualifying transaction does not claim this relief, it may be subject to taxation, which increases costs for the lighthouse authority. This could limit the available funds for maintaining and upgrading essential navigation services, ultimately affecting safety at sea.

Related Information and Further Reading

For more details on this topic and others related to land transactions and exemptions, you may find it helpful to check related sections of HMRC guidance or visit other resources. Examples of other reliefs can be found [here](https://stampdutyadvicebureau.co.uk/hmrc/SDLTM29690).

In Summary

General lighthouse authorities can save costs on land transactions when they follow the correct procedure to claim relief under the Merchant Shipping Act. By understanding the qualification process, providing the necessary documentation, and ensuring that all conditions are fulfilled, these authorities can continue their vital work in ensuring safe navigation at sea without the additional burden of unnecessary taxes.

Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: SDLTM29690 – Reliefs

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