Read the original guidance here:
HMRC SDLT: SDLTM62290 – Processing: Further guidance for completing forms SDLT1, SDLT3 and SDLT4: Further guidance for question 26 SDLT1, number of properties

Guidance on Filling Out Question 26 of SDLT1 Forms

Understanding Question 26

Question 26 on the SDLT1 form—1.26 in the online version—asks you to specify how many properties you are acquiring or leasing in a particular transaction. This is a necessary part of the form.

You need to indicate the number of properties based on the following categories:

• Separate chargeable interests
• Separate plots of land
• Separate interests that need to be registered

Getting this answer right is important as it affects the number of certificates you may receive if you request them in question 27 (1.27 online). When writing the number, always use figures, like 2 instead of writing it out in words as TWO.

What Counts as a Property?

Properties can include various forms of ownership or plots. Here are some examples to clarify what is considered a single property:

– If you are transferring the ownership of a freehold or a lease, or granting a new lease for a single building or a piece of land, this counts as one property. This includes multi-occupation buildings like office blocks, blocks of flats, shopping malls, or industrial estates. In any case where you are dealing with only one chargeable interest, you should enter the number 1.

– If the transaction involves a freehold transfer or new lease on a property that has parts affected by one or more leases as of the transaction’s effective date, you will need to provide a separate list of those leases.

Examples of Property Count for Paper Notification

Here are some examples to help illustrate how to count properties when completing the SDLT1 form for paper notification:

– Suppose you are selling three distinct areas of land that are part of a farm called Home Farm in one combined freehold transaction. In this scenario, this counts as three individual properties. If you are doing paper notification, you must fill out a separate form SDLT3 for each of the other two properties. In the case where you are selling or leasing and that sale involves a freehold subject to existing leases for the same three areas of land, you will need to complete a separate SDLT4 form for each additional property.

– If there are multiple transactions linked to one another, and you are using one SDLT1 form along with supplementary forms to report these transactions, you need to enter the total number of properties across all linked transactions in this section.

– However, if each linked transaction is reported on a separate SDLT1 form, you should only report the number of properties related to the transaction listed on that specific SDLT1. You should not provide the total from all linked transactions in this case.

Handling Multiple Registered Titles

If the transaction involves more than one registered title, you will need either separate certificates for each title or a schedule that details each of the titles involved. Each title must be clearly identified, and you will enter them as follows:

– The first title associated with this SDLT1 will be recorded in questions 28 to 33.

– If you answered ‘F’ or ‘O’ in question 2, the subsequent titles will be reported on forms SDLT3 under questions 1 to 9.

– On the other hand, if you answered ‘A’ or ‘L’ in question 2, the following titles will be recorded on forms SDLT4 under questions 8 to 14.

Importance of Accurate Reporting

It is critical to give precise information on how many properties are being acquired or leased. This influences the proper processing of your transaction and the issuance of required certificates. The system is designed to ensure that everything is clear for both parties in the transaction, which helps avoid complications later.

When reporting linked transactions or dealing with multiple titles, keeping track of details ensures that information reported is accurate. This precision matters not only for tax calculations but also to ensure compliance with regulations.

Final Notes on Completing the SDLT1 Form

While filling out the SDLT1 form, particularly question 26, ensure that you take into account all aspects of the property being reported. Whether it is a separate chargeable interest or a plot of land, noting the details correctly will assist in completing the forms used for Stamp Duty Land Tax (SDLT).

In understanding these principles, you can navigate the process with confidence, ensuring you fulfil all requirements laid out in the SDLT guidelines.