Special flyer - practitioner newsletter 4 - attachment

New Stamp Duty Land Tax (SDLT) forms which will be issued with automatic processing of SDLT1 returns

As we continue to increase the number of SDLT forms processed through our automated system we thought it would be useful to give a quick guide to the type of forms you are likely to receive over the next few months. During the last few months we have seen calls about these forms increase to our Enquiry Line with the result that callers are experiencing some delays in speaking to an advisor. It is hoped that the following information will be able to answer some of the frequent queries that we are receiving from practitioners and their clients. For further information about SDLT please visit the SDLT pages.

As a general point, when practitioners and purchasers receive an SDLT8, 9,11 or 12 we recommend that they contact one another to agree who will reply to the query to avoid having both parties responding to us separately.

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SDLT8s: when they will be issued

Following the lifting of ‘Light Touch’ on 19th July, where returns processed manually need to be sent back (primarily to practitioners), we will continue to return them immediately and ask for them to be put right and re-submitted quickly. We will still include an SDLT65 letter with the return detailing the omitted item(s) that are required under law.

For returns processed under the automated system, an SDLT8 letter may be automatically generated. This advises whether:

  • there is some information missing from the original notification (SDLT1); or
  • it appears to be incorrect; or
  • It appears to conflict with information given elsewhere on the SDLT1.

A certificate will not be issued unless the correct or missing information is provided. When we issue an SDLT 8, it means that the SDLT 1 will remain on the system, and be completed when the SDLT 8 is returned.

When you receive an SDLT8 it is important to remember that the 30-day period (after which penalties can be imposed) triggered by the effective date of the transaction will still be running. The SDLT 8 should be returned within the 30 day period to avoid a late filing penalty.

Practitioners or purchasers can fax through completed SDLT 8's to the office shown at the top of the form, provided the information requested does not require the signature of the purchaser. Fax numbers can be obtained from the Stamp Taxes Contact page.

The SDLT8 might ask for information that has already been given- this could be because it conflicts with a response elsewhere on the form. Sometimes our automatic scanning processes will not have been able to scan the information because of the way in which the form was completed (e.g when forms have been completed without using black ink or where writing is illegible or not within the scannable boxes).

The SDLT8 is an extension of the original return and, as such, needs to be signed by the purchaser(s) or a partner nominated to the Revenue in respect of a transaction undertaken by a partnership. In some circumstances we will accept information given on an unsigned form. As a general rule a signed SDLT8 should always be submitted when the information impacts on the tax calculation. We can only accept an SDLT8 signed only by the agent or a letter containing the response to the SDLT8 signed only by the agent when:

  • It does not relate to the tax calculation, or
  • the agent indicates they have a power of attorney, or
  • the purchaser is a Company thus there is an implied authority

Although we strongly recommend that the actual SDLT8 is completed and returned, we can also accept a letter containing the response to the SDLT8 signed by the agent and co-signed by the purchaser or a partner nominated to the Revenue (i.e. for partnership transactions). Again if the SDLT8 relates to the tax calculation, it should be signed by the purchaser.

We can accept certain minor amendments to, or queries about a previously submitted SDLT1 over the phone. In other instances, changes or queries can only be dealt with by returning the SDLT 8 to us. Here is a list of the main types of enquiries that can be answered over the phone and those that will require submission of an SDLT 8:

Queries that can be answered over the phone

  • Restrictions, covenants or conditions where neither Yes or No has been ticked at Box 5
  • Where a transaction involves more than one property and a certificate is required for each property and neither Yes or No has been ticked at box 27
  • Local Authority number missing (Box 29)
  • Area of land where Box 32 applies no details given
  • The National Insurance Number (NINO) is incorrectly formatted
  • Is the purchaser acting as a trustee where neither Yes or No has been ticked at box 55
  • Is the 2nd purchaser acting as a trustee (Box 69)
  • Supplementary returns were not enclosed although box 70 indicated there were some
  • Agents postal or DX Address (Either Box 61 or 62 or both)

Queries that will require a signed SDLT 8

  • The type of property (Box 1)
  • Information on the consideration (Boxes 10 to 15)
  • The description and date of a transaction (Boxes 2 & 4)
  • The address or situation of land (Box 28)
  • Claiming a relief (Box 9)
  • Information relating to Leases (Boxes 16 to 25)
  • Information relating to the vendor or purchaser
  • The address where a certificate should be sent

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SDLT9: letter advising there has been an overpayment of tax and a refund is due

An SDLT9 is issued to both the agent and the purchaser. It will advise that when they sent their SDLT1 return to us they also sent an overpayment of tax and are due a refund

To issue a refund we require a covering letter from either the purchaser or their agent claiming the refund quoting the Unique Transaction Reference Number (UTRN). We do not need a copy of the SDLT1 return because this information is saved on our core system and we will be able to view it on screen. The covering letter should be sent to the Worthing Stamp Office, who will have issued the SDLT9, at the following address:

Repayments Section
Room 35, East Block
Barrington Road
Worthing
West Sussex
BN12 4XJ

DX 3799 Worthing 1

We will not be able to repay any overpaid amount until we have received written confirmation from the purchaser or their agent.

If we have not received a reply to the SDLT9 within 10 days, we will issue a reminder letter, SDLT9A.

Once we have received a letter claiming the refund, payment will normally be made approximately within 2 weeks from the date of receipt.

Where an agent is acting on a purchaser’s behalf, we would normally issue the payable order to the agent or the agent can request that the payable order be issued direct to the purchaser. However purchasers can request that the payable order is issued direct to them, or another of the purchasers involved in the transaction.

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SDLT11: issued when Disadvantaged Area Relief (DAR) is not originally claimed

In circumstances where we process automatically an SDLT1 relating to a property that appears to be situated within a Disadvantaged Area, but no claim has been made to claim the relief associated with this, we will send customers an SDLT 11.

The SDLT11 will ask a customer whether, assuming the information shown is correct, they wish to write to us to claim the relief. Upon receipt of the claim, the appropriate repayment will be made approximately within 2 weeks.

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SDLT12: letter advising an underpayment has been made and the balance is required

An SDLT12 is issued to both the agent and the purchaser informing them that an underpayment [or a penalty] has been made and the balance (including interest that has arisen) is due.

Purchaser/agents are advised to make the underpayment as soon as possible, because they will not receive their SDLT5 certificate until payment has been made if the SDLT12 relates to an underpayment of tax. Where the SDLT12 relates to a penalty imposed, the certificate will already have been received but interest on the late payment or penalty will continue to accrue. If payment is not made the matter may be passed to the Inland Revenue Debt Recovery Department.

Customers can dispute the underpayment, which may give rise to a change to the financial information. We need written confirmation in these circumstances. Where the payment has already been made you should provide the following information:

Amount,
When Sent,
Where Sent,
How payment was made. If paid by cheque has the cheque been cashed? What reference number was sent with the payment?,
If more than one ref/SDLT1 used then please quote all.

Customers should send their payments to:

HMRC Accounts Office
Crown House
Victoria street
Shipley
West Yorkshire
BD17 7TW

If we have not received a reply to the SDLT12 within 10 days, we will issue a reminder letter, SDLT12A. The SDLT12A will also include any interest that has arisen.

If you are unable to obtain an answer for any query you may have regarding these forms or any aspect of SDLT or Stamp Duty in general, please contact the Stamp Office help line.