SDLTM50320 - Procedure: Uncertain rent becomes certain - FA03/Sch17A/Para8

  1. Original transaction notified on SDLT1 but no tax was due.
    • Original return notified but rent estimated at a sum giving rise to an NPV below the threshold.
    • Rent 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 rents
    • Self assessment of tax
    • Payment of any tax due
  1. Original transaction notified and tax paid.
    • Original return notified with rent estimated and SDLT paid
    • Rent 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 rent
    • Self assessment of tax
    • Payment of any additional tax within if estimate too low, or
    • Claim for refund of tax if estimate too high
  1. Original transaction was not notifiable as the estimated rent was below the notification threshold.
    • If the actual NPV is still below the notification threshold in place as at the original effective date of the transaction, no action need be taken.
    • If actual NPV is over that threshold you should complete an SDLT1, giving all relevant details of the transaction and sent to Birmingham Stamp Office. The rents should be the actual rents and the effective date is the date of the original transaction (penalties will not be charged if return is made within 30 days of actual rent becoming known)

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.