Your paper land transaction return
What is a land transaction return?
Your paper 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 notifies 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.
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 73
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 paper 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 the requirement that the purchaser must sign the return, see
'special situations'.
When don't I need to complete a land transaction
return?
Transactions do not need to be notified if they are included in
the list below.
- Any transaction where there is no chargeable consideration.
- Acquisition of a freehold interest where the chargeable consideration,
together with that of any linked transaction(s), is less than
£40,000.
- Grant of a lease for a term of seven years or more where the
premium (or any consideration other than rent) is less than £40,000
and the annual rent is less than £1,000.
- Assignment or surrender of a lease where the lease was granted
for seven years or more and the chargeable consideration for the
transfer or surrender is less than £40,000.
- 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 paragraphs
3 and 3A Finance Act 2003 (transactions in connection with divorce
or dissolution of a civil partnership formed under the Civil Partnership
Act 2004).
- 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.
- Land transaction exempt from SDLT under Schedule 3 paragraph
4 Finance Act 2003 (variation of testamentary dispositions).
- Alternative property finance - 'Further transactions' that
are exempt under sections 71A(4) or 72A(4) of the Finance Act
2003 (see sections 71A(7) and 72A(7)).
- Transfer of partnership interest -Transfers under paragraphs
14 or 17 of Schedule 15 to the Finance Act 2003 where consideration
does not exceed 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
HMRC will issue a Revenue certificate (form SDLT5) when they receive
a correctly completed paper Land Transaction Return. You can use
this to send to a Land Registry when required.
Note that although the transactions listed above are not notifiable
transactions for the purposes of Stamp Duty Land Tax, they may still
require registration with a Land Registry.
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