HMRC SDLT: SDLTM80350 – Compliance: Liaison

Compliance: Liaison Principles and Concepts

This section of the HMRC internal manual, titled SDLTM80350, focuses on compliance and liaison within the organisation. It outlines key principles and concepts essential for effective communication and collaboration between different departments.

• Emphasises the importance of inter-departmental communication.
• Details procedures for ensuring compliance with regulations.
• Provides guidelines for liaising with external bodies.
• Highlights strategies for maintaining accurate records.
• Discusses the role of technology in facilitating compliance.

Responsibility for Valuation When Completing a Land Transaction Return

Introduction to Valuations

When you need to submit a land transaction return, it is important to calculate the amount of chargeable consideration correctly, as per the law outlined in the Finance Act 2003, Section 76. This calculation can involve determining the market value of the land or property involved in the transaction.

Who is Responsible for Valuations?

It is the responsibility of the purchaser to provide a valuation if it’s necessary for the calculation of chargeable consideration. This means that if you are buying a property and the market value needs to be established, you must arrange for this valuation.

Role of HM Revenue & Customs

The Stamp Office, which is part of HM Revenue & Customs (HMRC), does not prepare or obtain valuations for any purchaser. Instead, they focus on ensuring that the process is fair and that all purchasers are treated equally.

Professional Valuers

Valuing assets, particularly when it comes to land transactions, can be complicated and often requires professional expertise. HMRC employs trained valuers who review the valuations submitted to check for accuracy and compliance with tax regulations. This is an essential part of HMRC’s duty to follow the Taxpayers Charter, ensuring consistent treatment of all taxpayers.

Assistance from the Valuation Office Agency

If the asset involved is related to land, you can get support from the Valuation Office Agency. They provide guidance and assistance regarding the valuation of land and properties that need to be considered in your transaction.

For more details, refer to the relevant guidance here: SDLTM80360 – Compliance: Liaison.

Assistance for Non-Land Assets

In cases where the asset being valued is not related to land, assistance is available from the Shares Valuation team within HMRC. This can include various forms of property or financial assets that are part of the transaction.

Again, you can find more information about this assistance in the section mentioned earlier: SDLTM80360 – Compliance: Liaison.

Conclusion

Understanding the responsibilities related to valuations during a land transaction is vital for compliance with tax regulations. Ensure that you obtain the necessary valuations from the appropriate professional sources to avoid issues with HMRC.

Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: SDLTM80350 – Compliance: Liaison

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