Read the original guidance here:
HMRC SDLT: SDLTM50400 – Procedure: Further land transaction return where relief is withdrawn FA03/S81

Further Land Transaction Return When Relief is Withdrawn

Important Information: If you claimed certain types of relief and a disqualifying event happens, you need to file a further return within a specified timeframe. This guidance explains what you need to do in such cases.

What is a Disqualifying Event?

A disqualifying event refers to situations that occur after you have received relief for acquiring residential property or other specific circumstances that change your eligibility. Here are some situations that may lead to disqualifying events:

• Sale of the property to an ineligible party.
• Change in the use of the property that affects its qualifying status.
• Failure to comply with conditions set out for the relief.

Which Relief Types Are Covered?

This guidance applies to three main types of relief:

• Schedule 6A: Relief for certain acquisitions of residential property.
• Schedule 7: Group relief and reconstruction relief.
• Schedule 8: Charities relief.

How to Submit a Further Return

If you experience a disqualifying event, you must take the following steps:

1. Timeframe for Submission

You have 30 days from the date of the disqualifying event to submit your further return. Failing to do so may lead to penalties.

2. What to Include in the Letter

Your submission must be in the form of a letter directed to the Birmingham Stamp Office. The letter needs to include:

• Your Unique Taxpayer Reference Number (UTRN) from the original notification.
• A self-assessment of the tax now due.
• A cheque for the amount of tax calculated.

This process ensures the authorities are informed about the changes in your eligibility for relief.

3. Effective Date of the Return

The effective date for this further return relates to the disqualifying event, establishing when notification, penalties, and interest will take effect. This means that you should always refer to the date when the disqualifying event occurred.

Application of FA03/SCH10 and Related Provisions

The provisions of FA03/SCH10 apply to your land transaction return in the same way as they apply under a different clause, FA03/S76, but with specific modifications:

• The phrase about ‘the transaction to which the return relates’ will now refer to ‘the disqualifying event’.
• ‘The effective date of the transaction’ will be understood as the date on which the disqualifying event occurs.

Additional Points to Consider

Throughout this process, ensure that:

• You keep a copy of the letter and all related paperwork for your records.
• Your self-assessment is accurate to avoid further complications.
• You are aware of the potential penalties if the return is not made on time or if the self-assessment is incorrect.

Need Help?

If you’re unsure about any aspect of submitting a further return or if you have specific questions about your situation, consider reaching out for professional advice. Consulting a tax adviser can provide clarity and ensure compliance with tax regulations.

For more information, refer to SDLTM23070 and related guidelines.