HMRC SDLT: SDLTM61500 – Processing: Letters of authority

Principles and Concepts of Letters of Authority

This section of the HMRC internal manual provides guidance on processing letters of authority. It outlines the essential principles and concepts involved in handling these documents, ensuring compliance with HMRC protocols.

• Definition and purpose of letters of authority.
• Steps for validating and processing these letters.
• Responsibilities of HMRC staff in managing authority letters.
• Compliance with legal and procedural standards.
• Examples of acceptable and unacceptable authority letters.

Processing: Letters of Authority

In matters concerning Stamp Duty Land Tax (SDLT), communication regarding SDLT cannot occur with an agent other than the one listed in the SDLT return. This rule applies until a proper letter of authority is submitted, which allows a different agent to represent the purchaser, and this letter must be signed by the purchaser or by all purchasers if there are multiple buyers.

Repayments

When seeking a refund for SDLT, it is necessary to provide a letter of authority if the agent, named on the SDLT return or someone else, is requesting the refund on behalf of the purchaser and asking for it to be paid directly to them.

The letter must be signed by the purchaser, or by each purchaser in the case of joint purchases, and it should clearly state that they agree for the repayment to be sent to that agent. This letter must be submitted and acknowledged before the refund can be processed.

Letter of Authority

If you need a template for creating a letter of authority, you can find it at SDLTM61510. This template helps ensure all necessary information is included for a valid letter of authority.

Key Points to Remember

– Only the agent stated in the SDLT return can discuss SDLT matters unless a letter of authority has been submitted.
– A letter of authority is necessary for refund requests, allowing the refund to be sent directly to an agent instead of the purchaser.
– The purchaser, or all purchasers in a joint purchase, must sign the letter of authority.
– Approval via a signed letter must be received before any repayments are processed.

By following these guidelines, you will ensure that all parties are properly represented in SDLT matters and that refunds can be processed efficiently and correctly.

Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: SDLTM61500 – Processing: Letters of authority

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