About the tax calculation
- Q9. Reliefs
- Q10. Total consideration payable
- Q11. VAT included in total consideration
- Q12. Form of consideration
- Q13. Linked transactions
- Q14. Total tax due
- Q15. Total amount enclosed or otherwise paid
SDLT1 Q9. Reliefs
You must answer at least the first part of this question.
Note: you must claim all reliefs and exemptions on form SDLT1. Even where the relief results in no tax liability it must be claimed here. You may not use the self-certificate form SDLT 60 to claim any of these reliefs or exemptions. Only use self-certification for the transactions listed at ‘When don’t I need to complete a land transaction return?’.
There are many forms of relief or exemption from stamp duty land tax. Some give full relief from tax, others give partial relief. If you are claiming relief answer ‘Yes’ in the first part. You must then select the appropriate code to enter into the second part. If you answer ‘No’ you must leave blank the whole of the rest of question 9.
- SDLTM27010 If right to buy relief is claimed (code 22), you must enter the actual consideration payable for the acquisition of the interest in land at question 10 for freehold or an assigned lease, and at questions 22 and/or 23 for the grant of a new lease. At the appropriate question enter the discounted amount. The tax must be entered at question 14.
- SDLTM21020 If part-exchange (house-building company) relief is claimed (code 08), give the company CIS (Construction Industry Scheme) reference number in the third part.
- SDLTM26000 If charities relief is claimed (code 20), and the charity is registered with the charity commissioners, give in the third part its registered number if it has one. If a Scottish charity, give the Scottish charity number as recognised by HM Revenue & Customs.
- SDLTM28000 Alternative property finance (code 24), is relief in respect of the additional land transactions that occur when an individual finances a property purchase using an alternative mechanism not based on payment of interest.
- SDLTM20080 For relief claimed on part only of the property show in the fourth part the amount of consideration (if a lease, the premium), that has been apportioned on a just and reasonable basis to the part to which the relief does not apply.
- Zero Carbon Relief (code 30) - The regulations which set out how the relief from stamp duty land tax for zero-carbon houses will operate, has been laid before Parliament. Changes were made to the draft regulations (PDF 47K) following consultation about them earlier this year and also attached is a summary of responses (PDF 161K) made to the consultation and how the government has responded to them.
- Relief is not given for transactions of non-residential property in a designated disadvantaged area (code 06), with an effective date on or after 17 March 2005. This is subject to transitional provisions where the contract was entered into before that date, see SDLTM20110.
| Reliefs | Code | Manual |
|---|---|---|
Designated disadvantaged areas (residential) |
05 |
|
Designated disadvantaged areas (non-residential) |
06 |
|
Designated disadvantaged areas (mixed-use) |
07 |
|
08 |
||
Relocation of employment |
09 |
|
Compulsory purchase facilitating development |
10 |
|
Compliance with planning obligations |
11 |
|
Group relief |
12 |
|
Reconstruction relief |
13 |
|
Acquisition relief (tax at 0.5%) |
14 |
|
Demutualisation of an insurance company |
15 |
|
Demutualisation of a building society |
16 |
|
Incorporation of a limited liability partnership |
17 |
|
Transfers involving public bodies |
18 |
|
Transfer in consequence of reorganisation of parliamentary constituencies |
19 |
|
Charities relief |
20 |
|
Acquisition by bodies established for national purposes |
21 |
|
Right to buy relief |
22 |
|
Registered social landlords |
23 |
|
Alternative property finance |
24 |
|
Collective enfranchisement by leaseholders (relief not yet available) |
25 |
|
Crofting community right to buy |
26 |
|
Diplomatic privileges relief |
27 |
|
Other relief |
28 |
|
Combination of reliefs |
29 |
|
Zero carbon houses |
30 |
|
SDLT1 Q10. Total consideration payable
You must answer this question if you answered F, A or O at question 2. Leave blank if you answered L.
SDLTM03700 Show here the total consideration in money or money's worth, in whatever form, given by the purchaser for the interest in land acquired. This is the figure on which stamp duty land tax is charged.
The figure entered as the total consideration must
- Include any VAT actually payable.
- Not include rent or premium on the grant of a new lease, returned as L at question 2. (See further guidance below.)
However if any form of consideration was given for the assignment or in Scotland assignation of a lease, A at question 2, enter the amount here question 22 does not need completing.
If no consideration of any kind has been given, or consideration has been
received do not enter '0'. Instead consider
whether you should complete self-certificate form SDLT60 to register the transaction,
see ‘Self-certification’.
For most transactions the figure shown at question 10 will be the purchase
price and it will be paid wholly in monetary form.
See notes on question 12 for notifying consideration which is other than cash, in particular where property is transferred subject to a debt.
Requirement to notify the market value of a property at question 10
In the following situations stamp duty land tax is charged on the market value of the subject matter of a transaction rather than on the consideration given by the purchaser
- SDLTM04020 - when properties are exchanged, if at least one property represents a major interest in land, there will be two separate, notifiable, transactions both requiring notification of the market value of the property acquired
- SDLTM30220 - when the purchaser is a company connected with the vendor, for example transactions between connected companies. This applies if group relief has been claimed on the transaction and it is considered that there will be no stamp duty land tax to pay
- Where all or part of the consideration is in the form of shares (subject to certain exceptions)
- Where the transfer is in respect of employment services
- Where the purchaser of a shared ownership lease makes an election to pay stamp duty land tax on the market value of the property, rather than on the actual premium paid for the lease
- Where partnership assets have been treated as chargeable on their market value
- When there is an exchange of interests in the same property, for example in a sale and lease back transaction
Market value is the price which the subject matter of the transaction may be expected to achieve in a sale in the open market at arms length on the effective date of the transaction, i.e. the date notified at question 4 of the land transaction return.
If this transaction is:
- the grant of a new lease (returned as L for question 2) including, in Scotland, the exchange of missives of let, leave questions 10 and 11 blank and complete questions 16 to 25 as appropriate
- for chargeable consideration wholly or in part calculated on the market value of what is received, see notes at question 12 on market valuation.
Note: chargeable consideration includes anything paid for assets that in law are part of the land.
SDLT1 Q11. VAT included in total consideration
SDLTM03800 Only complete this question if VAT is charged on the transaction, for example on the sale of new commercial property or if the vendor (seller) has elected to waive exemption.
Enter here the amount of VAT charged. If there is no VAT leave blank.
If the transaction is the grant of a new lease (question 2 category L)
leave blank but complete questions 16 to 25 as appropriate.
SDLT1 Q12. Form of consideration
You must answer this question.
SDLTM03700 The codes describe different forms of consideration.
Most transactions will be completely satisfied by a monetary payment in which case the only entry will be the cash code 30.
But, where relevant, up to 4 different types of consideration may be recorded in the spaces provided at question 12, for example if a transfer of equity with a balancing cash payment is being notified codes 30 and 31 should be used.
Stamp duty land tax is chargeable on the total value of all forms of consideration in money or money's worth see SDLTM04140 and SDLTM80350.For transactions where stamp duty land tax is chargeable on the market value of the property acquired rather than the actual consideration paid, code 34 should be used at question 12, unless it is an exchange in which case code 37 applies see guidance for codes 34 and 37 below.
No other code will be necessary despite the fact that a payment may have been made by the purchaser.
This guidance includes shared ownership leases where the purchaser has elected to pay stamp duty land tax on the market value of the property, rather than on the actual premium paid for the lease.
Debt - Code 31 SDLTM04040 relates to:
- The satisfaction or release of debt due to the purchaser or owed by the vendor;
- The purchaser 'assuming' (taking responsibility for) an existing debt.
A purchaser is treated as assuming debt if the rights or liabilities of any party in relation to the debt are changed as a result of the transaction. The amount of debt assumed by the purchaser is treated as consideration given. See Examples.
A mortgage taken out at the same time as the purchase of a property is not the assumption of responsibility for a debt owed by the vendor (seller) of the property. So if a property is purchased for £300,000 with the benefit of a £200,000 mortgage the chargeable consideration is (cash) £300,000 and only code 30 (cash) should be entered.
Note: a gift of an interest in land does not itself constitute
a chargeable transaction for stamp duty land tax.
However if the donee assumes a debt, usually, but not always, a mortgage,
previously owed by the donor, there is a chargeable occasion in respect of
which the donee is treated as having given consideration to the extent of
the amount of the debt taken over.
Example 1: Jack transfers a half share in his house for no cash consideration to Jill and at the same time she takes on joint responsibility for the mortgage. The house is worth £300,000 but is subject to a mortgage of £200,000 at the time of transfer. £100,000, that is, half the amount of the outstanding mortgage, is chargeable consideration. (Enter code 31).
Example 2: Jill transfers a half share in her house for
no cash consideration to Jack. The house is worth £300,000. At the same
time she redeems the existing mortgage, £200,000 outstanding and together
they take out a new mortgage of £250,000. The chargeable consideration
is £100,000, half the redeemed mortgage. (Enter code 31).
A transaction may also be in satisfaction of a debt due to the purchaser or
owed by the vendor. In this case the amount of debt satisfied is the amount
of chargeable consideration. Whether the debt is assumed or satisfied, the
chargeable consideration.
is equal to the debt unless the open market value of the land passing is less,
in which case the amount of the consideration is limited to the value of the
land.
Building Works - Code 32
If the purchaser agrees to carry out building works on land, the chargeable consideration is the open market value of such works. This may not apply if the land is already owned by the purchaser or is transferred as a result of this transaction or if the works are carried out after the effective date of the transaction.
Employment - Code 33
If the land transaction is entered into by reason of the purchaser's employment, or the employment of a connected person, the chargeable consideration is the rental value assessed for income tax purposes or the market value of the property.
Other (such as an annuity) - Code 34
Any other consideration, in money's worth, not otherwise listed here, or, as noted above, the market value of the interest in land acquired should be notified using code 34, except for exchanges where code 37 should be used.
Shares (quoted) - Code 35
These must be valued at the effective date of the transaction.
Shares (unquoted) - Code 36
These must be valued at the effective date of the transaction.
Other Land - Code 37
If the purchaser and vendor exchange each to the other an interest in land, at least one of which is a major interest, there are in effect two separate transactions each of which must be notified by the respective purchasers. Tax is paid on the market value of the land acquired. Relief may be available if the purchaser is a house-building company that is taking the vendor’s house as part consideration for the sale of a new built house. See question 9 code 08.
Services - Code 38
If the purchaser undertakes to provide services, the chargeable consideration is the open market value of those services.
Contingent Consideration - Code 39
The transaction may provide for a further amount of consideration to be paid some time in the future dependent on whether or not something occurs. For example a further amount may have to be paid if the purchaser is granted planning permission.
Tax is chargeable at the effective date on an amount to include any contingent payment on the assumption that the contingency will occur.
The consideration or part of it may depend on uncertain future events. In this case the amount of consideration will be based on the best estimate that can be made of the likely outcome as at the effective date of the transaction. If this applies, you must complete supplementary return form SDLT4.
In some circumstances where receipt of consideration is delayed because of a contingency, deferment or partial deferment of tax may be allowed. SDLTM50900. Please contact Stamp Taxes Helpline if you think this may apply to the transaction which you are notifying.
Do not treat rent payable as a result of a future rent review as contingent consideration.
SDLT1 Q13. Linked transactions
You must answer this question.
Transactions are 'linked' if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them.
If this transaction is linked to any other(s) answer ‘Yes’ and enter the total amount paid for all the linked transactions including any VAT. If it is not linked to any other transaction you must answer ‘No’ and leave the rest of question 13 blank.
Multiple acquisitions if six or more properties are being transferred special arrangements may be possible to help keep to a minimum the forms required.
There are two methods of notifying linked transactions:
(i) a single form SDLT1 plus the appropriate supplementary forms
This method may be used for linked transactions that:
- all come within the same code at question 2, either A, F, L or O and
- each have the same effective date, and
- have identical purchasers and identical vendors, and
- at question 9 of the SDLT1:
- are not claiming any reliefs at all, i.e. 'no' in the first part of question 9, or,
- are all claiming the same relief in part two of question 9.
To notify linked transactions all within code F or code O at question 2 on a single SDLT1:
- enter details of the first transaction on form SDLT1
- show the total consideration paid for all linked transactions at both questions 10 and 13 part 2
- show the total amount of tax payable on all the transactions at question 14
- Show the total number of properties being notified at question 26
- Give address details of the first transaction at questions 27 onwards
- notify details of the other linked transactions on supplementary form(s) SDLT3
To notify linked transactions all within code A at question 2 on a single SDLT1:
- enter details of the first transaction on form SDLT1, including the section 'About Leases', questions 16 to 21
- show the total consideration for all the linked transactions at question 13 part 2, this should be the same amount notified at question 10
- show the total amount of tax payable on all transactions at question 14
- Show the total number of properties being notified at question 26
- Give address details of the first transaction at questions 27 onwards
- enter the details of the other linked transactions on supplementary form(s) SDLT4
To notify linked transactions all within code L at question 2 on a single SDLT1:
- Leave questions 10 and 11 of form SDLT1 blank
- enter details of the first transaction on form SDLT1, including the section 'About Leases', questions 16 to 25
- show the total premium paid for all linked transactions at SDLT1 question 13 part 2, but if no premium applies, enter 0
- show the total amount of tax for all transactions at SDLT1 question 14
- Show the total number of properties being notified at question 26
- Give address details of the first transaction at questions 27 onwards
- notify the other linked transactions on supplementary form(s) SDLT4, taking care to complete questions 24 to 27 (with 0 if not applicable)
(ii) a separate form SDLT1 for each linked transaction
This method must be used if at least one of the following applies. You have linked transactions that
- do not fall within the same code for question 2 of the SDLT1
- do not share the same effective date
- do not have both identical purchasers and identical vendors (for example because of the connected persons rules)
- are claiming a relief in respect of one or more transactions but not for all
- are claiming different types of relief requiring different codes at question 9 part 2.
To notify linked transactions on separate forms SDLT1:
- on each SDLT1 show the consideration only for the transaction notified
- at question 10 for codes A, F or O,
- at question 22 and/or 23 for code L
- on each SDLT1 show the total consideration other than rent for all linked transactions at question 13 part 2 (for code L cases where there are no premiums, enter ‘0’.)
- calculate the tax on the figure notified at question 10 by using the rate of stamp duty land tax appropriate to the figure shown at question 13 part 2
- at question 14 show the amount of tax payable only for the transaction reported on the individual SDLT1
Apportionment of the chargeable consideration: if a single price was negotiated and paid for all the linked transactions that price should be apportioned between each of the transactions on a just & reasonable basis.
There is no need to obtain professional valuations for this purpose. The purchaser may estimate their own apportionment of the value appropriate to each transaction it is advisable that evidence is retained to show how the apportionment was arrived at should enquiries be opened into the returns at a later date.
For details of connected persons see Section 839 Income & Corporation Taxes Act 1988
Examples:
- Husband & wife are connected
- A person is connected with his or her brother or sister, his ancestor or lineal descendant
- A person is connected with a company that he or she controls and two companies are connected if the same person controls both of them.
Calculation:If transactions are linked aggregate the whole consideration payable for all the transactions other than rent.
Apply the appropriate rate of tax to that total. (For code L cases where the consideration includes rent, see the example at question 25.
Example:Jack buys a house for £240,000 and his wife Jill buys the garden of the house for £20,000, both from the same vendor and as part of a single bargain. Both land transaction returns are submitted 2 months after the filing date
Jack’s return
- Question 10 will show £240,000
- Question 13 will be ticked ‘yes’
- Question 13 part 2 will show £260,000
- Question 14 will show £7200, i.e. tax is charged at 3%, the rate applicable to the aggregate consideration of £260,000
- Question 15 will show £7300 (£7200 + £100 fixed late filing penalty)
Jill’s return
- Question 10 on Jill’s land transaction return will show £20,000
- Question 13 will be ticked ‘yes’
- Question 13 part 2 will show £260,000
- Question 14 will show £600
- Question 15 will show £700 (£600 + £100 fixed late filing penalty)
SDLT1 Q14. Total tax due
You must answer this question.
Enter the amount of tax that should be paid in respect of this land transaction based on the total chargeable consideration.
- For question 2 code A, F or O cases apply the appropriate rate of tax to the amount shown for question 10, which for linked transactions is determined by the amount entered at question 13 part 2,
- For question 2 code L cases calculate separately any tax due in respect of the premium (question 24) and any tax due in respect of the (NPV) rent (question 25). Enter here the total of the two amounts,
- For question 2 code L cases with linked leases notified on SDLT1 and SDLT4, calculate separately any tax due in respect of the premium (SDLT1 question 24 and SDLT4 question 26) and any tax due in respect of the (NPV) rent (SDLT1 question 25 and SDLT4 question 27). Enter here the total of these calculations in respect of all the linked leases.
- The rate of tax, other than on the rental element of leases, depends on the amount of chargeable consideration for the transaction or, if linked with one or more land transactions (see question 13), the total chargeable consideration other than rent for the linked transactions.
The current rates of tax are –
Residential (effective from 23 March 2006):
- Does not exceed £125,000 - 0%
- Exceeds £125,000 but not £250,000 - 1%
- Exceeds £250,000 but not £500,000 - 3%
- Exceeds £500,000 - 4%
Non-residential or mixed (effective from 1 December 2003):
- Does not exceed £150,000 - 0%
- Exceeds £150,000 but not £250,000 - 1%
- Exceeds £250,000 but not £500,000 - 3%
- Exceeds £500,000 - 4%
- For earlier rates of tax
If the chargeable consideration exceeds a threshold, the higher rate of tax is charged on the whole amount. For example consideration £125,001 tax at 1% = £1250 (ignore pence); consideration £250,001 tax at 3% = £7500 (ignore pence).
If no tax is due because the rate is 0% or full relief from tax is claimed, enter 0. For a new lease that has been granted (code L at question 2) the 0% rate becomes 1% for consideration other than rent if the average annual rent exceeds £600.
The amount of tax due must match the payment enclosed and entered on a payslip or paid by other means, see ‘Paying stamp duty land tax’.
Exceptions are where we have agreed to defer payment and you have entered details on a supplementary return form SDLT4 or if your payment is the sum of the tax due at question 14 and any penalty/interest due. Always show the total remitted at question 15.
SDLT1 Q15. Total amount enclosed or otherwise paid
You must answer both parts of this question.
Show here the total amount being paid. See ‘How to pay’ including BACS, CHAPS, BillPay, internet and telephone banking.
If you have made, or intend to make, an application to defer payment of all or part of the tax due, please contact Stamp Taxes Helpline for special instructions.
There are penalties for filing late. See the notes at 'What
happens if the return and payment are late?'.
If your payment includes an appropriate penalty and/or interest because of
the late notification and/or payment of the tax, show this by entering ‘Yes’
in the second part. Enter ‘No’ if it does not.
In addition the purchaser may be liable to a tax-related penalty which will not exceed the amount of tax chargeable for the transaction.
If no tax is enclosed or otherwise paid enter 0.
Questions 16 to 25 are only relevant to leases and cases with lease involvement for which you must enter code L or code A at question 2.
