Where to send your SDLT paper work

The overwhelming majority of land transaction returns should be forwarded to the Rapid Data Capture Centre in Netherton for processing. However, in a small number of situations - set out below 'Returns' should be submitted to the Birmingham Stamp Office.

Correspondance to be marked with the type of SDLT enquiry.

  • Multiple properties completion

The SDLT6 Guidance Notes refer to special arrangements that are offered to customers making multiple acquisitions of property, i.e. situations where a 6 or more land transactions take place on the same day between the same purchaser and vendor.

There is guidance on the procedures to be used at SDLTM 60215.

Where these special arrangements are used, the paper copy of the schedule should be sent to Birmingham Stamp Office.

  • Disadvantaged Areas Relief (DAR)

Land transaction returns relating to transactions affected by the DAR transitional provisions for non-residential property (see note below) need to be sent to Birmingham Stamp Office for processing. In these cases the effective date of the transaction at box 4 is after 16 March 2005, but code 06 is claimed at box 9.

Note:
The ending of non-residential commercial DAR was announced in the Budget earlier this year. The operative date of the change is for transactions with an effective date after 16 March 2005. However the relief is preserved for:

  • the completion of contracts entered into and substantially performed on or before 16 March
  • the completion or substantial performance of other contracts entered into or before 16 March 2005, provided that there is no variation or assignment of the contract or sub-sale of the property after 16 March 2005 and that the transaction is not in consequence of the exercise after 16 March 2005 of an option or right of pre-emption.

 

  • Substantial performance

There are different scenarios for dealing with cases where a return needs to be made because an agreement or contract that has been previously notified because of "substantial performance" needs to be notified again on "completion".

If the agreement is for the transfer of a freehold or the assignment of an existing lease, the completion SDLT1 should be sent to Birmingham Stamp Office with a covering letter and a copy of the original SDLT1.

However, if the agreement is for the grant of a new lease, the grant of the new lease is treated as a completely separate transaction from the notional lease (notification on substantial performance), using the surrender and re-grant mechanism with overlap relief. A 'code L' SDLT1 & SDLT4 need to be submitted in the normal way; either by submitting online or if using paper forms, to the Rapid Data Capture Centre, Netherton.

If overlap relief resulted in nil rent being entered on to the NPV calculator for the grant of lease, and there was no additional premium over and above what may have been notified in the notional lease, then we would have the grant of a lease for no chargeable consideration. This means a SDLT60 could be used for the grant of lease.

  • Returns under Section 80, 81 and S81A Finance Act 2003 (Sect 80, 81, 81A FA 2003)

 

S80 - cases where consideration that was contingent, uncertain or unacertained becomes known and a new return is required.

S81 - cases where a return is required because a relief, like group relief, which was due is now withdrawn.

S81A - cases where a transaction is linked to an earlier transaction for which a return charging tax at the lower rate has already been submitted and a new return reflecting a higher rate of charge is needed.

We are working to produce specific returns to notify these events. For now you should forward full details of the event requiring the return in a letter to Birmingham Stamp Office, attaching a copy of the original return and the appropriate payment.

  • Returns under Schedule 17A Finance Act 2003
    Inserted by Section 120 Schedule 39 Finance Act 2004 (Sch17A FA 2003)

* Only applies to leases, which start under SDLT

    • Schedule 17A para 3 Leases that continue after a fixed term and grow beyond the term end date.
    • Schedule 17A para 4 Treatment of leases for indefinite term and grow beyond the term end date
    • Schedule 17A para 8 Adjustment where rent ceases to be uncertain
  • Returns relating to cases of contingent or uncertain consideration where tax has been deferred under FA03/S90.

There is guidance on the deferment application - which is to be sent Birmingham Stamp Office in advance of submission of the SDLT1 - in the stamp duty land tax manual at SDLTM 50910.

Where deferment has been agreed, so that the figure of tax paid at box 15 is less than the appropriate rate on the total consideration (which, in line with S51 FA03, should include the contingent amount) at box 10, the land transaction return should be sent to the Birmingham Stamp Office for processing.


We are working to produce specific returns to notify these events.

For now you should forward full details of the event requiring the return in a letter to Birmingham Stamp Office, attaching a copy of the original return and the appropriate payment, correspondence to be marked with the appropriate query.