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HMRC SDLT: SDLTM50910 – Procedure: deferring payment in case of contingent or uncertain consideration FA03/S90: how the application is to be made

SDLTM50910 – Procedure: Deferring Payment in Cases of Contingent or Uncertain Consideration

This article explains how to apply for deferring the payment of Stamp Duty Land Tax (SDLT) when there is uncertainty about the payment details. The rules and procedures are outlined in the Stamp Duty Land Tax (Administration) Regulations 2003.

Key Information About the Application

To apply for deferring SDLT payment, follow these key steps:

• The application must be written.
• It must be submitted within 30 days after the transaction’s effective date.
• Applications submitted late will not be accepted.

Where to Send Your Application

Your application should be sent to the Stamp Office. Ensure you include the following information:

• Mark all correspondence clearly with ‘SDLT Deferment Applications.’

What to Include in Your Application

The application needs to have specific details for it to be processed effectively. Include the following:

• The Identity of the Purchaser: Clearly state who is making the purchase.
• The Location of the Land: Provide the exact address of the property involved.
• The Nature of the Contingency/Uncertain Payment: Describe what the uncertain payment is about.
• The Amount of Consideration for Deferment: State how much of the payment you want to defer.
• Details on Expected Payment Times: Give as much information as possible regarding when you expect the payments to be made.
• A Reasoned Opinion on When the Payment Will Be Certain: Explain when you believe this payment will become definite or ascertainable.
• Calculation of SDLT on Total Consideration: Provide a breakdown of the SDLT owed based on the total of both actual and uncertain payments.
• Calculation of SDLT Related to the Deferral Application: Include a specific calculation for the portion of SDLT you want to defer.

Additional Information Requests

HM Revenue & Customs (HMRC) may reach out for more information to process your application. If this happens:

• HMRC will inform you of what they need.
• They will give you at least 30 days to provide the required information.

Consequences of Not Providing Information

If you do not provide the requested information within the given timeframe, HMRC may reject your application. Therefore, timely communication is essential to avoid issues.

Impact of Application Submission

Once you submit your application to defer SDLT payment, the deferment amount is put on hold. This means the payment obligation is temporarily suspended while HMRC reviews your application.

Conclusion on Application Timing and Processing

It is important to get your application in right away, as missing the 30-day deadline can lead to denial. Consider all the details you provide and how they affect the outcome.