HMRC SDLT: SDLTM60210 – Processing: Supplementary information: Paper forms SDLT2, SDLT3 and SDLT4

Supplementary Information on SDLT Paper Forms

This section of the HMRC internal manual provides guidance on processing supplementary information for Stamp Duty Land Tax (SDLT) using paper forms SDLT2, SDLT3, and SDLT4. It is essential for ensuring compliance with tax regulations.

• Details the use of SDLT2, SDLT3, and SDLT4 forms.
• Explains the process for submitting supplementary information.
• Provides guidelines for HMRC staff on handling these forms.
• Aims to ensure accurate tax processing and compliance.

Understanding SDLT Paper Forms SDLT2, SDLT3, and SDLT4

Introduction to SDLT Paper Forms

When you’re involved in land transactions, completing the necessary forms accurately is essential. Specifically, the supplemental forms SDLT2, SDLT3, and SDLT4 gather extra information that is crucial for processing your land transaction return. You must submit these forms along with your main return.

When Do You Need SDLT2?

Use SDLT2 when your transaction involves:

– More than two vendors (sellers).
– More than two purchasers (buyers).

If there are over 99 additional sellers or buyers in total, you will need to create and submit a separate schedule. This schedule should include all necessary information as requested in the SDLT2 form.

Purpose of SDLT3

The SDLT3 form is necessary in the following situations:

– You are including each additional property in a single transaction.
– If the response in question 2 or 1.2 online of the SDLT1 form has a code F or O.
– When the property address does not fit on the SDLT1 form.

For transactions involving six or more properties, refer to guidance in SDLTM60215 for more detailed instructions.

Situations Requiring SDLT4

You must file the SDLT4 form in any of the following cases:

– The purchaser is a company.
– The transaction is part of the purchase of a business.
– A post-transaction ruling has been received.
– Any part of the payment (consideration) is contingent upon certain events.
– You have made arrangements with HM Revenue & Customs to pay the tax in instalments.
– The transaction involves granting a new lease.
– If the response to question 2 of the paper SDLT1 form or 1.2 online is L or A, and question 26 or 1.26 online is greater than 1.

For more information regarding SDLT4, you can refer to the SDLT4 Guidance Notes available on the HMRC website.

Submission Process

The paper forms SDLT2, SDLT3, and SDLT4 must be submitted to the Stamp Office. Once the Stamp Office receives these forms, the supplementary information will be combined with the transaction details from the SDLT1 form.

Data Entry into the System

It is important to note that none of the information from SDLT2, SDLT3, or SDLT4 can be entered into the system until the related paper SDLT1 form has been scanned and the data has been captured.

Key Points of SDLT Paper Forms

– SDLT2: Used for transactions involving more than two sellers or buyers and for additional schedules if there are over 99 participants.
– SDLT3: Required for additional properties and specific coding situations in the SDLT1 form.
– SDLT4: Necessary for transactions involving companies, businesses, conditional payments, installment arrangements, leases, and specific responses in SDLT1.

Submitting the Forms

Make sure you accurately complete each form. Double-check your details before submitting them to avoid any delays or issues in processing your transaction.

Further Guidance

For detailed instructions related to specific scenarios involving SDLT, please refer to the relevant SDLT guidance documents.

Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: SDLTM60210 – Processing: Supplementary information: Paper forms SDLT2, SDLT3 and SDLT4

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