Land Transaction Return & Payment

Q. Who needs to complete the land transaction return?

  • The purchaser or their agent (normally, their solicitor or licensed conveyancer) should complete and send the Return to HMRC.
  • The purchaser must sign the Return.
  • The agent can not sign on the purchaser's behalf (see below about power of attorney)

Q. Who can sign the return?

  • As the liable persons, all the purchasers are required to sign the return.
  • An agent cannot sign on behalf of the purchaser (except under a power of attorney or when using the ‘agent’s copy’ facility available on Stamp Taxes Online, the Stamp Taxes CD ROM or recognised third part software)

Q. Power of attorney

  • The holder of a power of attorney can sign on behalf of the principal
  • The power of attorney document does not need to be submitted with the return.
  • Where a person signs under a power of attorney this must be noted in the space provided in Box 71. The person signing should write "power of attorney" under the signature.

Q. Why do you need my National Insurance number (NINO)?

  • In line with other taxes we require the NINO of the purchaser.
  • The NINO is the only way that HMRC can use to link tax records and provide a fair tax system where everyone is treated equally and meeting their tax obligations.

Q. Who signs the Return if there are joint purchasers?

  • Only one return is needed, but both or all names need to be included and it needs to be signed by both or all of them. However where the purchasers are purchasing as trustees of a settlement any trustee may sign.

Q. Who signs the Return if the purchaser is a Partnership?

  • The Return may be signed by one or more of the partners on behalf of the partnership.

Q. Where do I get the land transaction return form?

  • You will be able to order them from the Orderline on 0845 302 1472.

Q. Do I have to use an original Return or can I use photocopies?

  • You must use an original; photocopies will not be accepted.
  • Supplementary forms (SDLT 2, 3 and 4) must also be originals as photocopies will not be accepted.

Q. Is there an electronic version of the form?

Yes. This is available on Stamp Taxes Online or from recognised third party software providers.

Q. What about 'substitute forms' (forms produced by software suppliers)?

Q. Will it be possible to download forms from the Internet?

As all forms have a unique pre-printed reference number it will not be possible to download forms. However the SDLT 60 Self Certificate is available for download and may also be photocopied.

Q. Where do I send my Return?

Q. I am experiencing delays using Hays-DX courier envelopes, why is this?

  • The most common reason Practitioners are experiencing delays is because they are franking Hays-DX courier envelopes. When this happens Royal Mail is unable to recognise the address as it is not in acceptable Royal Mail format. Envelopes are forwarded to the Royal Mail Bootle area (because the DX address is for the Bootle area) where some are recognised as belonging to us and the remainder sent on to the Undelivered Letters Unit in Belfast. Please ensure that the Hays-DX courier envelopes used when sending in SDLT1 returns are not franked through the Royal Mail service.

Q. How do I pay?

  • You enclose a cheque with your land transaction return and send it to Netherton.
  • You can also pay using either BACS or CHAPS, at your bank, at the Post Office or using Girobank. Further information on 'How to pay SDLT' is available.

Q. What should I do if I want to pay my stamp duty land tax by BACS/CHAPS?

You must give the Bank the following information:

  • The unique reference number from the payslip
  • Our account number
  • The amount of duty

Q. Can I pay electronically?

Q. Do I get a receipt?

  • If you have submitted the correct information and payment you will be issued with a land transaction return certificate.
  • You will need to send this certificate (or a 'self-certificate', see below) with any application for registration of the transaction or document at the appropriate land registry. The certificate also acts as a receipt.

Q. What if I have paid too much stamp duty land tax?

  • If you think you have paid too much stamp duty land tax (SDLT) you should act quickly. There are time limits. Before writing, you will need to know the following information.

Q. How do I register a transaction that is not notifiable / what does self-certification mean?

  • If you want to register a transaction at the land registries which does not require notification to HMRC, you will have to sign a 'self-certificate' giving details of the transaction
  • Self-certificates can be obtained from the HMRC order line or at the land registries.
  • Self-certificates do not have to be originals, photocopies may be used.

Q. Do I need to include any additional information?

  • For the majority of straightforward transactions, all the information you need to provide is included on the form.
  • However, some transactions may require the supplementary forms to be completed.
    • SDLT 2 - when there is more than two purchasers or vendors
    • SDLT 3 - when there are multiple properties involved or the description of the land does not fit onto the SDLT1
    • SDLT 4 - when it is a complex commercial transaction and leases

Q. What constitutes a complex commercial transaction / when do I have to complete the SDLT4?

  • A land transaction is part of a business sale agreement
  • A post transaction ruling has been received in accordance with Code of Practice 10
  • Any part of the consideration is contingent or uncertain
  • Arrangements have been made with HMRC to pay the tax in instalments
  • There are mineral rights reserved
  • The purchaser is a company

It should also be referred to for possible completion if

  • The transaction is the grant of a new lease, or in Scotland, exchange of missives of let
  • The transaction relates to the grant of multiple leases

Q. What happens if I have made a mistake and need to make an amendment?

  • You can amend your land transaction return within 12 months of the filing date (that is, 30 days after the date of transaction)
  • You should tell us as soon as possible if you realise that something is wrong or you need to add any information.

Q. Do I need to submit a Form LA451 ('PD' form)?

  • No, the land transaction return replaces the LA451 (PD form in N. Ireland) for SDLT transactions.

Q. Is there any chance that HMRC will enquire into my land transaction?

  • Yes, even if the certificate is issued, HMRC may make enquiries into a land transaction return.

Q. How long is the enquiry period?

  • The enquiry period is 9 months.

Q. How long do I need to keep my records for?

  • In line with other taxes, tax records have to be kept for six years from the date of notification.
  • If an enquiry is made records should be kept until the enquiry is completed.
  • You may be charged penalties if you fail to keep your records.

Q. What records do I need to keep?

Examples of records you need to keep are:

  • A contract / agreement for sale and any related side papers
  • Details of any apportionment of consideration between the land transaction and other transactions (e.g. purchase of chattels / moveables)
  • Any professional valuation that has been obtained
  • Relevant instruments relating to the transaction, in particular any contract or conveyance, and any supporting maps, plans or similar documents
  • partnership agreements
  • completion documents
  • records of relevant payments, receipts and financial arrangements
  • deed of attorney, where you can have the power of attorney in particular cases
  • You must also keep a copy of the SDLT 1 and any supplementary returns.

Q. What happens if I have paid stamp duty but it turns out I am eligible for a relief?

  • If the system identifies an overpayment we will send you a letter confirming the information you have given us.
  • When we get confirmation from you, you will be repaid the full amount + any interest due.

Q. What happens if the return is submitted late?

  • If the return is filed late the purchaser will be charged a flat-rate penalty of £100 if the return is delivered within three months after the filing date, and £200 in any other case.
  • If your return is incorrect because you have tried to mislead us, or because you have not taken reasonable care to fill it in correctly, then you may be liable to a penalty
  • If we have given you formal notice requiring you to provide information, and you have failed to do so, then you may be liable to a penalty.