Your land transaction return

What is a land transaction return?

Your land transaction return consists of form SDLT1, and whatever supplementary forms SDLT2, 3 and 4 and approved schedules are necessary to make a complete return.

For every notifiable land transaction the purchaser must complete, sign and send the land transaction return to be received by HM Revenue & Customs before the end of 30 days following the effective date of the transaction.

The return includes a self-assessment SDLTM00060 of the stamp duty land tax chargeable on the transaction returned.

Why complete a land transaction return?

A correctly completed land transaction return enables us to quickly supply the purchaser with a 'Revenue certificate (form SDLT5 (PDF 204K))' for production to the appropriate Land Registry in England and Wales or in Northern Ireland or to the Keeper of the Registers of Scotland.

Revenue certificates (form SDLT5)' are issued once a correctly completed land transaction return has been received by us.

Incorrect and incomplete returns will:

  • result in correspondence to resolve problems
  • delay the issue of 'Revenue certificates (form SDLT5)', and
  • may lead to penalty and interest charges.

We no longer require 'Particulars Delivered' form L (A) 451 (PD forms) except in the rare case where a land transaction is still within the scope of the old stamp duty regime SDLTM49000.

A fully completed land transaction return contains all the information formerly requested on a PD form.

Transactions that are not notifiable transactions for the purposes of stamp duty land tax may still require registration. Further information should be obtained from the Land Registry (Opens new window).

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Who should complete and sign the land transaction return?

In the majority of cases the return is likely to be drafted and submitted by a solicitor, licensed conveyancer, legal executive or accountant on behalf of the purchaser. Or the purchaser in person may complete and submit the return.

SDLTM07100 It is always the responsibility of the purchaser to make sure that the information given in the return is complete and correct, and it is the purchaser who must sign the declaration at question 71 of the return form, SDLT1.

'Purchaser' means any person acquiring the subject matter of the transaction, so it includes the tenant under a new lease.

Because a land transaction return comprises form SDLT1 together with any supplementary forms (SDLT2, SDLT3, SDLT4), plans and schedules that may be required to make a full return, it is essential that a purchaser, before signing, reads, understands and assents to all the information to be submitted in that return.

For further information about signing the return see 'signing the land transaction return'. For the limited number of exceptions to requirement that the purchaser must sign the return, see 'special situations'.

When don't I need to complete a land transaction return?

All transactions to acquire an interest in land must be notified unless they are included in the list below:

  • transfer or conveyance of a freehold interest in land for no chargeable consideration.

  • grant of a lease in England & Wales or Northern Ireland for a term of seven years or more and for no chargeable consideration (that is, no premium and no rent of any monetary value).

  • transfer or assignment of a lease for no chargeable consideration.
  • grant of a lease where all the following are satisfied:
    • the term of the lease is less than seven years, and
    • the amount of any premium is not such as to attract a charge to SDLT at a rate of 1% or higher (ignoring the availability of any relief), and
    • the amount of any rent is not such as to attract a charge to SDLT at a rate of 1% or higher (ignoring the availability of any relief).
  • transfer or assignment of a lease where both the following are satisfied:
    • the term of the lease when granted was less than seven years
    • the amount of any consideration for the assignment is not such as to attract a charge to tax at a rate of 1% or higher (ignoring the availability of any relief).
  • Land transaction (other than the transfer of a freehold interest in land, or grant or assignment of a lease) where the amount of the consideration is not such as to attract a charge to SDLT at a rate of 1% or higher (ignoring the availability of any relief).

  • Land transaction exempt from SDLT under Schedule 3 paragraph 3 Finance Act 2003 (transactions in connection with divorce or dissolution of a civil partnership formed under the Civil Partnership Act 2004).

  • Land transaction exempt from SDLT under Schedule 3 paragraph 4 Finance Act 2003 (variation of testamentary dispositions)

  • Transfer or conveyance of a freehold interest in land consisting entirely of residential property where the chargeable consideration, together with that of any linked transaction(s), is less than £40,000.
  • Acquisition by a beneficiary entitled under a will or on intestacy, where the only consideration given is the assumption of ‘secured debt’ as defined in paragraph 3A of Schedule 3 Finance Act 2003.

  • Transfer of interest in a partnership for chargeable consideration not exceeding the zero rate threshold.

Apart from certain specific exemptions listed above, all reliefs and other exemptions must be claimed on the land transaction return, form SDLT1; even if that relief or exemption means that the stamp duty land tax chargeable is reduced to nil.

In addition please note that the following interests are outside the scope of stamp duty land tax:

  • any security interest, for example a mortgage, or in Scotland a standard security (see note to SDLT1 question 12 'Debt code 31' for when a mortgage may constitute chargeable consideration)
  • a licence to use or occupy land
  • in England and Wales or in Northern Ireland -
    • a franchise, that is a grant from the Crown awarding the right to hold a market or fair, or the right to take tolls
    • a tenancy at will
    • a manor