About the transaction

SDLT1 Q1. Type of property

You must answer this question.

The following definitions apply:

01 Residential property is defined as:

  • a building used or suitable for use as a dwelling, or is in the process of being constructed or adapted for use as a dwelling
  • the garden or grounds of such a building, including structures on the garden or grounds
  • an interest or right in or over land that benefits a dwelling, for example a right of way to access the dwelling

However you must show as non-residential any transaction involving the transfer of a major interest in (or grant of a lease over) six or more separate dwellings.

02 Mixed property is where only part of the property is residential.

03 Non-residential property is where the whole of the property is not residential.

Note:

  • Your answer must be correct for the whole of the property included in the transaction, especially if that transaction covers more than one building or more than one site. For example the sale of a farmhouse with farm buildings, farm land and an agricultural worker's cottage must be returned as mixed

If you enter mixed or non-residential you must also complete form SDLT4.

SDLT1 Q2. Description of transaction

You must answer this question.

The code in question 2 is needed to ensure that the right sections of the land transaction return have been completed. It is not used for any other purpose.

F - Conveyance/Transfer

Code F must be used:

  • in England, Wales and Northern Ireland, for every transfer of a freehold (whether legal or equitable, and including commonhold)
  • in Scotland, for every transfer of ownership of land

EXCEPT where the freehold or ownership of land is subject to a lease, in which case code A applies (see below).

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L - Grant of Lease

Code L covers the grant of a new lease, including an overriding lease, or of a replacement lease where a previous lease expired or ended for any reason. In Scotland, it includes the exchange of missives of let, which are not to be completed by the grant of a formal lease.
SDLTM15010 Variations of leases are (with one exception, see below code O) land transactions equivalent to the grant of a new lease and are to be allocated code L. These include:

  • variations of a lease which result in an increase of rent (see O below for variations which reduce the rent or term)
  • 'variations' (in England, Wales and Northern Ireland only) which give rise to a surrender and re-grant by operation of law
  • 'variations' in Scotland which extend the period of the lease and take effect, for stamp duty land tax purposes, as a new lease

Code L covers all cases where tax is chargeable on the rental or premium element of a new lease. It is essential that you supply further information in the section headed "About Leases". See notes on questions 16 to 25 of SDLT1 in additional details for cases involving leases.

A – Any other transaction where there is a lease involved

Code A must be used for all other transactions where there is a lease involved, including where consideration has been given for:

  • the assignment or assignation of an existing lease
  • the transfer of a freehold (in Scotland, ownership of land) which is itself subject to a lease or leases
  • the surrender or renunciation of a lease by a tenant
  • the acquisition of a freehold or leasehold reversion by a tenant

For code A it is essential that you supply further information in the section headed 'About Leases'.

Questions 16, 17, 18 19, 20 and 21 should be completed, but not questions 22, 23, 24 or 25.

See notes on questions 16 to 21 of SDLT1 in additional details for cases involving leases.

O - Other

Code O includes all acquisitions of interests apart from those listed under A, F or L. Examples are:

  • the acquisition of an easement or servitude
  • the acquisition of sporting rights

Leave questions 16 to 25 blank for all transactions within code O.

For transactions within code O, you need only complete a return on form SDLT1 and notify us of the acquisition if Stamp Duty Land Tax is chargeable at 1 per cent or more.

SDLT1 Q3. Interest transferred or created

You must answer this question.

Select and enter the appropriate code.

FP Freehold, with vacant possession, in Scotland owner's interest with vacant possession

FG Freehold, in Scotland ownership, subject to a long lease or leases each reserving a ground rent or nominal rent, for example, the acquisition of the freehold with ground rents from a block of flats let on 99 year leases at £50 per annum each

FT Freehold subject to a lease or tenancy to an occupier, for example, the acquisition of a freehold house subject to a tenancy or a shop subject to a lease to the occupier, in Scotland owner's interest subject to tenancy

LG Long leasehold at a ground rent or nominal rent with vacant possession for example, the acquisition of a vacant possession flat held on a 99 year lease at a ground rent of £50 per annum

LT Leasehold subject to a lease or leases to an occupier for example, the acquisition of the 99-year leasehold interest in a shop subject to a lease to the occupier

LP A lease to an occupier, for instance, with vacant possession and not at a ground rent or nominal rent, for example, the grant of a new lease of a shop to an occupier or the assignment of such a lease, in Scotland tenant's interest

OT All other interests, for example, in England and Wales and in Northern Ireland the acquisition of a share of any legal interest or the acquisition of an easement

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SDLT1 Q4. Effective date

You must answer this question

For the majority of purchases the effective date will be the completion date. In Scotland it will be the date of settlement of the sale or, in relation to a lease, the date when it is executed by the parties or is constituted by any means.

A contract may be 'substantially performed' before completion. Substantial performance occurs if:

  • the purchaser or a person connected with the purchaser takes possession of the land
  • any rent is paid, whether under the contract or under a separate licence
  • the purchaser pays the whole or substantially the whole (normally, not less than 90 per cent) of any consideration other than rent

In such circumstances the earlier date of substantial performance is the effective date that you must enter. You may also have an obligation to notify us once completion occurs. For advice on how to do this contact the Stamp Taxes Helpline.

Note: you must not post-date this entry.

SDLT1 Q5. Restrictions, covenants or conditions

You must answer this question.

If there are any unusual restrictions, covenants or conditions (historic or new) which have an effect on the value of the interest granted or transferred 20 or 22, answer 'Yes' and give a brief description. Use a maximum of 42 characters including spaces.

Examples: vendor right to buy back at less than MV; lease covenants restrict shop use; agricultural occupancy condition applies

Note: only use letters numbers and spaces in your description. Avoid all use of punctuation or any other kind of symbol.

If there are none, answer 'No' and leave the remainder of the question blank.

SDLT1 Q6. Contract date

Whether or not the transaction has gone to completion or settlement, enter the date of the contract or agreement for sale or lease. In Scotland this includes the date of the conclusion of missives.

Do not complete this question if there was no prior agreement, for example, for the grant of a lease.

Note: you must not postdate this entry. You cannot enter a date that is later than the effective date entered at question 4. If exceptionally, the contract date is later than the effective date, please leave blank.

SDLT1 Q7. Land exchanged or part-exchanged

You must answer this question.

If you have given the vendor, in exchange for the interest in land you have acquired, another interest in land, answer 'Yes' to this question and give the address, including the postcode, if any, of the land given in exchange or part-exchange.

The other side of the exchange will be a separate land transaction. Note that:

  • if the interest in land you have acquired is a major interest, at question 10 enter the market value of that interest
  • if the interest in land you have acquired is not a major interest, but the interest you gave in exchange is a major interest, the consideration you must enter at question 10 is the market value of the interest you have acquired

If you answer 'No', then the remainder of the question must be left blank.

SDLT1 Q8. Exercise of an option

You must answer this question.

If the purchaser had previously entered into an option to acquire an interest in or right over the land and this transaction results from that option being exercised, answer 'Yes'. If not, answer 'No'.

Note: if the option was originally granted in return for consideration you may also need to make a return under Section 81A Finance Act 2003. For advice on this please telephone the Stamp Taxes Helpline.