Read the original guidance here:
HMRC SDLT: SDLTM51000 – Procedure: Applications for Non-Statutory Clearances

SDLT51000 – Procedure: Applications for Non-Statutory Clearances

When you’ve got questions about how tax law applies to Stamp Duty Land Tax (SDLT), you may need some assistance. HM Revenue & Customs (HMRC) offers a service called the Non-Statutory Clearance Service. This service gives written confirmation useful for situations where there is real doubt about how tax laws are applied to specific transactions or circumstances.

What is Non-Statutory Clearance Service?

The Non-Statutory Clearance Service is designed to clarify any uncertainties you might have regarding tax matters linked to SDLT. Whether you’re a business or an individual, you can use this service. In this context, a ‘customer’ refers to the person who will be listed as the purchaser in the SDLT1 form when you make a property transaction.

How to Use the Non-Statutory Clearance Service

If you want to utilise the Non-Statutory Clearance Service to get HMRC’s view in writing, there are certain steps you need to follow:

• First, refer to the guidance available on the official Gov.uk website to understand what information you need to provide alongside your request. The link to this information is https://www.gov.uk/guidance/non-statutory-clearance-service-guidance.
• Make sure you are clearly presenting the uncertainty you have regarding the application of tax law. HMRC will only consider requests where there is a genuine point of uncertainty.
• Be aware that HMRC is not able to offer tax planning advice. This means they will not provide guidance on strategies to avoid or lessen tax obligations that would typically arise from a transaction.

Important Points to Remember

Before you submit your application, keep these important points in mind:

• Submit your application as early as possible before the transaction occurs. This will allow sufficient time for HMRC to review and respond to your request.
• Focus on the specific areas where you are uncertain. This helps HMRC understand your request better and provide a more precise answer.

Next Steps

After you have completed your application, HMRC will assess the details you provided. The response will include their interpretation of the law as it applies to your particular situation. This can give you the confidence you need to proceed with your transaction based on their feedback.

For additional details on how to apply to the Non-Statutory Clearance Service, visit the Gov.uk guidance page at https://www.gov.uk/guidance/non-statutory-clearance-service-guidance.

Understanding the process and preparing your application carefully can assist you in navigating your SDLT concerns effectively. The Non-Statutory Clearance Service exists to help clarify those tax law uncertainties, providing clarity in your property transactions.