Read the original guidance here:
HMRC SDLT: SDLTM50000 – Procedure

Overview of Land Taxes in the UK

From April 2015, purchasers of land in Scotland will not pay Stamp Duty Land Tax (SDLT) anymore. Instead, they will be subject to a new tax called Land and Buildings Transaction Tax (LBTT). For more details, you can visit the Scottish Government’s website.

In Wales, starting 1 April 2018, Land Transaction Tax (LTT) will replace SDLT for any land transactions. This tax will be managed by the Welsh Revenue Authority. If you are involved in a land transaction in Wales, you do not have to pay SDLT or submit a tax return to HM Revenue and Customs (HMRC). For more information about the transition from SDLT to LTT, please refer to the guidance on cross-border transactions.

Key Aspects of Land Transaction Returns

When you engage in a land transaction, there are specific duties you need to understand regarding the return you must submit:

• SLDTM50100: This section explains your obligation to submit a land transaction return as outlined under FA03/S76. You’ll need to complete and send this form whenever you are involved in a transaction.
• SLDTM50200: This covers the process for registering land transactions according to FA03/S79. Proper registration is important for legal purposes and for ensuring tax compliance.
• SLDTM50250: Information on what to consider when completing a transaction after significant performance of a sale agreement.
• SLDTM50260: Similar to the previous point but focuses on agreements for lease. It’s crucial to understand this for leased properties.

Adjustments in Land Transactions

Sometimes circumstances can change after you’ve submitted a return. In these cases, it’s important to know how to make adjustments:

• SLDTM50300: This section details how to adjust your return if a contingency ceases or if the consideration becomes known under FA03/S80.
• SLDTM50310: This covers special cases where adjustments may be necessary if a contingency around a land transaction changes.
• SLDTM50320: This relates to situations where uncertain rent becomes certain, as indicated under FA03/Sch17A/Para8. Understanding this concept is important for landlords.
• SLDTM50350: Explains the regulations concerning later linked transactions as per Section 81A of the Finance Act 2003. Linked transactions must be reported appropriately.

Special Returns and Adjustments

If relief from tax is withdrawn or your circumstances change, it is essential to take the following actions:

• SLDTM50400: This section talks about the requirement for a further return if you experience a withdrawal of relief under FA03/S81.
• SLDTM50450: Addresses leases that continue even after a set term ends, as per the regulations outlined in FA03/Sch17A/Para3.
• SLDTM50500: Understand your responsibilities in case of loss, destruction, or damage to a return as stated under FA03/S82.
• SLDTM50550: This discusses leases that are for an indefinite term under FA03/Sch17A/Para4. Knowing the distinction between fixed and indefinite leases can affect your tax obligations.

Assessments and Payments

Ensuring compliance with your tax obligations involves understanding assessments and payments:

• SLDTM50600: A description of the formal requirements related to assessments, penalty determinations, and other compliance issues under FA03/S83.
• SLDTM50700: Explains the process of paying Stamp Duty Land Tax as per FA03/S86.
• SLDTM50800: This section discusses how interest on overpaid tax can be repaid under FA03/S89.

Applications and Appeals

If you need to make an application or contest a decision, here’s what you should know:

• SLDTM50900: Details on when you can make an application.
• SLDTM50900A: Examples that clarify when applications can be made.
• SLDTM50910: Step-by-step instructions on how to make an application.
• SLDTM50920: Special rules that apply when performing work or providing services related to land transactions.
• SLDTM50930: This section explains how to appeal if HM Revenue and Customs refuses your request.
• SLDTM50940: Outlines the terms under which requests for acceptance are handled.
• SLDTM50950: Discusses the procedure for notifying HMRC about any additional events related to your transactions.

General Guidance and Overpayment Relief

Across all land transactions, it’s important to understand the general guidance as well as specific details on overpayment relief:

• SLDTM51000: Provides general guidance relevant to all types of land transactions.
• SLDTM52000: Discusses relief in cases of double assessment as outlined in FA03/Sch10/Para33.
• SLDTM54000: Details the start date and time limits for claiming overpayment relief.
• SLDTM54010: Provides legal context regarding overpayment relief.
• SLDTM54100: Lists exclusions related to overpayment relief.
• SLDTM54110: Case A addresses overpayment relief errors related to a misunderstanding of a relief or election.
• SLDTM54120: Case B covers mistakes regarding a relief or election that also affects overpayment relief.
• SLDTM54130: Case C explains overpayment relief exclusions related to claims made after deadlines.
• SLDTM54140: Case D looks at grounds for claims considered on appeal regarding overpayment relief.
• SLDTM54150: Case E focuses on grounds that were not considered on appeal related to overpayment relief.
• SLDTM54160: Case F explains instances when HMRC proceedings affect claims for overpayment relief.
• SLDTM54170: Case G elaborates on how prevailing practices may impact claims for overpayment relief.