Read the original guidance here:
HMRC SDLT: SDLTM62080 – Processing: Further guidance for completing forms SDLT1: Further guidance for question 13 SDLT1, linked transactions

SDLTM62080 – Processing: Further Guidance for Completing Forms SDLT1

Understanding Linked Transactions

Transactions are considered ‘linked’ when they are part of a single plan, arrangement, or series involving the same seller and buyer, or people connected to them. This means if you are involved in multiple purchases or sales that relate to each other, you must indicate this by answering ‘Yes’ when prompted.

Responding to Question 13 on the SDLT1 Form

When filling out question 13 of the SDLT1 form, you need to specify if your transaction is linked to others:

– If it is linked to one or more transactions, answer ‘Yes’. Then, provide the total payment made for all linked transactions, including any VAT.
– If the transaction is not linked to any other transactions, answer ‘No’ and leave the rest of question 13 blank.

Methods for Notifying Linked Transactions

There are two main ways to report linked transactions on the SDLT1 form:

1. Single SDLT1 Form with Supplementary Forms

You can use this approach if all your linked transactions meet the following conditions:

– They all fall under the same code indicated in question 2 (A, F, L, or O).
– Each transaction has the same effective date.
– The purchasers and vendors are identical for each transaction.
– Claiming relief is consistent for all transactions.

Here’s how to do it:

– For codes F or O:
– Fill in the details of the first transaction on the SDLT1 form.
– Enter the total consideration for all linked transactions at questions 10 and 13 (part 2).
– Input the total amount of tax due for all transactions at question 14.
– Indicate the total number of properties involved at question 26.
– Provide the address details for the first transaction at questions 27 onwards.
– Use supplementary form SDLT3 to provide details of other linked transactions.

– For code A:
– Complete the details of the first transaction including answers to questions 16 to 21 about leases.
– Enter the total consideration for all linked transactions at question 13 (part 2), matching this amount with question 10.
– Record the total tax payable on all transactions at question 14.
– Specify the total number of properties at question 26.
– Include address details starting at question 27.
– Enter details of the other linked transactions using supplementary form SDLT4.

– For code L:
– Leave questions 10 and 11 blank.
– Fill out details for the first transaction including answers to questions 16 to 25.
– Record the total premium for all linked transactions at question 13 (part 2); if no premium, enter ‘0’.
– Note the total tax for all transactions at question 14.
– Indicate the total number of properties at question 26.
– Provide address details starting from question 27.
– List the other linked transactions using supplementary form SDLT4, making sure to complete questions 22 to 25 (with ‘0’ for not applicable).

2. Separate SDLT1 Forms for Each Linked Transaction

This method is necessary if:

– The transactions do not fall under the same code according to question 2 and 3 of the SDLT1.
– They do not share an effective date.
– The purchasers and vendors are not identical.
– You are claiming relief for some transactions but not all.
– Different types of relief are being claimed that require various codes at question 9.

Steps to use separate forms:

– For each SDLT1, state the consideration only for each individual transaction.
– Report the consideration at:
– Question 10 for codes A, F or O.
– Question 22 or 23 for code L.
– Indicate the total consideration (excluding rent) for all linked transactions at question 13 (part 2). If no premium applies in code L, enter ‘0’.
– Calculate the tax based on the figure you provided at question 10 using the applicable stamp duty land tax rate corresponding to the figure in question 13 (part 2).
– At question 14, show the amount of tax payable for the specific transaction reported on that SDLT1.

Apportioning Chargeable Consideration

When all linked transactions have a single negotiated price, it must be fairly divided among them. You do not need to hire professionals for this valuation; you can make your own estimations. However, it’s wise to keep documentation that explains how you reached your apportionment in case HMRC questions it later.

For more information about connected persons, refer to Section 1122 of the Corporation Tax Act 2010.