Why SDLT8 letters are issued

We have recently carried out more analysis of the main errors on SDLT returns that lead to SDLT8s being sent out. This exercise involved randomly checking 158 SDLT8 forms that had been issued.

We found that the mandatory questions on the SDLT1 Return that continue to result in most errors are:

Box 10 - Do not leave blank unless box 2 is L. The ‘Total Consideration’ figure must be filled in - except for the grant of a new lease. If the transaction is the grant of a new lease, questions 16 to 25 should be completed instead.

Box 29 - Local Authority Number. The local authority number must be entered.

Box 34. The number of vendors/sellers must be entered. If more than one, questions 45 to 48 must be answered. If more than two, a supplementary SDLT2 return should be completed for each additional vendor/seller.

Box 70. This question shows how many additional supplementary returns have been used. If none, then ‘0’ must be shown.

Supplementary forms SDLT3 or SDLT4 are required in the following circumstances:

SDLT3

  • When Box 2 is F or O, where additional information is required to identify the property or
  • the transaction involves more than one property
  • SDLT4
  • If Box 2 is L or A and there is more than one property,
  • when additional information is required, for example:
    • the interest purchased is non-residential;
    • the purchaser is a company;
    • where the interest acquired is part of a business sale agreement: and
    • for some lease transactions.

We discovered that the non-mandatory questions that produce the most errors are:

Question 13 - If the transaction is not a linked transaction select ‘NO’. Do not enter a 'value in the following box, as this will cause the return to be rejected. If you are unsure whether the transaction is a linked one, please contact our Helpline.

Question 28 If additional information has been included about the property on an SDLT3 supplementary return, then a tick should be entered in the ‘Yes’ box.

Question 55 If the purchaser is a trustee or is one of several trustees, answer ‘Yes’.

Question 69 This should only be completed if there is a second purchaser and details have been provided at questions 65 - 68. (This question is often left blank even though there is a second purchaser.)