Read the original guidance here:
HMRC SDLT: SDLTM31900 – Application – Persons acting in a representative capacity FA03/S106

SDLTM31900 – Application – Persons Acting in a Representative Capacity (FA03/S106)

This section explains how certain individuals can act on behalf of others for Stamp Duty Land Tax (SDLT) purposes. They can handle SDLT tasks such as submitting returns and managing correspondence. A person with a power of attorney can sign returns for the purchaser due to provisions under FA03/S81B.

Who Can Act in a Representative Capacity?

The following individuals can perform SDLT functions on behalf of someone else:

• Trustees, Guardians, and Similar Roles: These are people responsible for managing the property of someone who cannot manage it themselves due to incapacity.
• Parents or Guardians of Minors: They take care of any SDLT obligations that the minor cannot handle.
• Personal Representatives: They are tasked with fulfilling the SDLT obligations of a deceased person who was involved in a land transaction.
• Court-Appointed Receivers: These receivers manage property under court oversight and have responsibilities related to SDLT.

Trustees, Guardians, and Persons in Control of Incapacitated Individuals

If a person is unable to manage their own property, the individual charged with overseeing that property must take care of any SDLT-related obligations. This could include making payments and handling submissions related to a property transaction. Here are some key points:

• The person in charge must act as if the incapacitated person were managing their affairs. They must follow all necessary procedures to ensure compliance with SDLT rules.
• If there is money available from the incapacitated person’s funds, the responsible individual can use those funds to cover SDLT payments. If they aren’t reimbursed for these payments, they have the right to be repaid.

Though incapacity is not explicitly defined in SDLT legislation, you should refer to the definition in TMA70/S108. This ensures that the obligations of the incapacitated person are appropriately managed under SDLT provisions.

Responsibilities of a Parent or Guardian of a Minor

A parent or legal guardian has the duty to oversee any SDLT obligations that a minor may have. If the minor cannot fulfill a payment or a requirement, the parent or guardian must step in. This could include:

• Filing SDLT returns for property purchased by the minor.
• Ensuring all SDLT payments related to the land transaction are met.

The parent or guardian steps into this role as a way to protect the interests of the minor, ensuring all financial responsibilities are managed appropriately.

Role of Personal Representatives

When a property transaction involves a deceased person, their personal representatives have specific responsibilities under SDLT. Key points to understand include:

• They take on the SDLT obligations of the deceased related to any property transactions that were initiated or would have been initiated by the deceased.
• The personal representatives can subtract any SDLT payments they make from the assets of the deceased person. This means if they pay SDLT on behalf of the deceased, they can recover that money from the estate.

This is an important role as it ensures that the estate remains compliant with SDLT obligations after the death of the property owner.

Responsibilities of a Receiver Appointed by a UK Court

A court-appointed receiver takes control and directs the management of property during legal oversight. They hold certain responsibilities under SDLT, which include:

• Managing SDLT obligations just as if the property were not in court control. This means they must file returns and ensure all SDLT payments are made.
• They must follow all relevant regulations, ensuring that the transaction is handled correctly from a tax perspective.

The existence of a court-appointed receiver does not remove the obligation for SDLT compliance; instead, it adds another layer of oversight to ensure that the property is managed properly.

Conclusion

This section provides a straightforward explanation of the duties of individuals acting in a representative capacity for SDLT. It clarifies who can take these responsibilities and outlines their obligations in each scenario—including for trustees of incapacitated persons, parents or guardians of minors, personal representatives of deceased owners, and court-appointed receivers.