SDLTM50310 - Procedure: Adjustment where contingency ceases or consideration ascertained FA03/S80 -special cases

  1. Original transaction notified on SDLT1 with no tax due.
  • Original return notified but consideration estimated at a sum below the threshold.
  • Consideration now ascertained and actual sum is higher than estimate.
  • Further return required - this takes the form of a letter to Birmingham Stamp Office it should contain:
    • UTRN of the original return
    • Details of actual consideration
    • Self assessment of tax now due (if applicable)
    • Payment of any tax within 30 days of consideration becoming ascertained
  1. Original transaction notified and tax paid.
  • Original return notified with consideration estimated and SDLT paid
  • Consideration now ascertained
  • Further return required - this takes the form of a letter to Birmingham Stamp Office it should contain:
    • UTRN of the original return
    • Details of actual consideration
    • Self assessment of tax now due
    • Payment of additional tax within 30 days of consideration becoming ascertained if estimate too low, or
    • Claim for refund of tax if estimate too high
  1. Original transaction not notified as the estimated consideration was below the notification threshold.
    • If the actual consideration is still below the notification threshold in place as at the original effective date of the transaction, no action need be taken.
    • If the actual consideration is now over that threshold you should complete an SDLT1, giving all relevant details of the transaction and send it to Birmingham Stamp Office. The consideration is the actual consideration and the effective date is the date of the original transaction

The return notifying the actual consideration must be made within thirty days of it becoming known or penalties may be payable. In addition, in bullet 2 of case three above, a penalty will be payable, calculated from the effective date of the original transaction.

Interest will be charged on tax payable due to an under estimate from thirty days after the original effective date. Interest will be added to tax repayable because of an over estimate from the date of receipt by HMRC.

NB If Deferment under Section 90 has been claimed the penalty and interest charges will be from the date the contingency ceased or the consideration is ascertained