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HMRC SDLT: SDLTM60000 – Processing – what forms to use to notify a land transaction

SDLTM60000 – Processing – What Forms to Use to Notify a Land Transaction

When you engage in a property transaction, it’s important to understand the correct procedures for notifying the appropriate authorities. Specifically, for land transactions in England and Northern Ireland, you need to deal with Stamp Duty Land Tax (SDLT).

Understanding SDLT

Stamp Duty Land Tax is a tax applied to property sales and transfers. The amount you pay depends on the property’s purchase price or its value if it is a gift or inheritance. If you fail to notify HM Revenue and Customs (HMRC) about your transaction, you may face penalties or interest charges.

Changes in the UK Tax Landscape

• From April 2015, SDLT does not apply to land transactions in Scotland. Instead, these transactions are subject to the Land and Buildings Transaction Tax (LBTT). For more details, refer to the Scottish Government website.
• From 1 April 2018, any land transactions in Wales will incur the Land Transaction Tax (LTT), which is administered by the Welsh Revenue Authority. This means you will not need to pay SDLT or submit a return to HMRC for transactions conducted in Wales.

General Guidance on SDLT

When you complete a property transaction, it is essential to notify HMRC using the appropriate forms and procedures. This ensures compliance with tax regulations. Here’s a breakdown of the steps you need to follow:

Which Paper Form Should You Use?

• For most land transactions, you will need to complete form SDLT1. This form collects the required information about the transaction and the parties involved.
• If your transaction involves multiple properties, you may need to consider form SDLTM60215, which provides guidance on reporting such transactions.

Where to Send Your Land Transaction Return

Your completed SDLT return must be sent to the SDLT processing centre. Ensure you send it by the deadline specified by HMRC to avoid penalties. The address and relevant details regarding where to send the return can typically be found on HMRC’s official website.

Additional Information on Transaction Types

Scottish and Welsh Transactions

As noted earlier, transactions in Scotland and Wales follow different processes, and SDLT does not apply. If you are involved in property transactions in these areas, make sure to consult the respective tax authorities for specific forms and requirements.

Supplementary Information

In addition to the main form, there are supplementary forms you may need:

• Form SDLT2: This is used for the claim of reliefs.
• Form SDLT3: This is related to the claim for overpaid tax or refunds.
• Form SDLT4: Submit this form if you are reporting any additional information concerning the transaction.

Multiple Property Transactions

If you are purchasing more than one property in a single transaction, it is vital to correctly complete the forms by referring to SDLTM60215 to ensure all properties are accounted for.

Forms SDLT8/8A

You’ll need to complete these forms if you require additional information or tax assessments necessary for the issuance of a certificate confirming your tax compliance.

Tax Payments

If you discover that you haven’t paid enough SDLT, you will need to complete form SDLT12/12A to request the payment of any underpaid tax. This form allows you to rectify any discrepancies promptly.

Responding to Requests for Information

Misdirected Responses

Sometimes, responses may be misdirected. If you receive a request related to financial or property information regarding form FA03/SCH10/PARA12 or FA03/SCH10/PARA14, you must ensure that your response is directed correctly to avoid any delays in processing.

Customer Requests

If you need assistance or information that can help you with your transactions, HMRC provides avenues to make requests. Ensure you provide clear details about your inquiry to receive the most accurate guidance.

Letters and Authorisations

Letters of Authority

You may need to provide a letter of authority if someone else is handling your SDLT matters on your behalf. This letter formally grants them permission to complete and submit the necessary forms and communicate with HMRC.

Sample Letter of Authority

Your letter should clearly state your details, the person’s details to whom you are granting authority, and the nature of their involvement with your SDLT matters. A standard template can usually be found in HMRC’s guidance materials.

When Notifications are Not Required

There are specific transactions that do not require notification to HMRC. Make sure you check the relevant guidance (like SDLTM62030) to see if your transaction falls into this category.

Selecting the Correct Property Type Code

When filling in your SDLT return, you will need to select the right code that corresponds to the type of property involved in the transaction. This information is vital for HMRC to process your return correctly.

Further Guidance for Questions on SDLT1

For specific questions on the form SDLT1, you can refer to additional guidance:

• Questions 1 and 16 SDLT1: This includes guidance on tenancies of residential, non-residential, or mixed-use properties.
• Question 2 SDLT1: This question involves descriptions of transactions, ensuring that you accurately define the nature of your transaction.
• Question 4 SDLT1: This is about the effective date of the transaction, which is essential for determining the timing of tax liabilities.
• Question 13 SDLT1: Understand linked transactions and when to report them, as they can affect the overall tax calculation.
• Question 29 SDLT1: Make sure you provide the correct local authority numbers associated with the property.

Additional Considerations

Plan of Land

When required, you may need to submit a plan of the land involved in the transaction as part of your SDLT return. This helps clarify the specifics of the property in question and ensures accurate processing of your return.

Further Guidance on Additional Questions

• For more detailed guidance related to questions 49, 50, and 51 on SDLT1, it is advisable to consult further resources available from HMRC.
• Specific questions regarding minerals or mineral rights reserved within a transaction can be addressed in guidance associated with SDLT3 and SDLT4.