Amendments to online version of SDLT6 guidance notes May 2006


Revised Guidance	Page amended on the online version of the SDLT6 guidance notes
Please don’t overwrite in the box - Instead cross through it and write clearly next to the box. Please don’t use correction fluid. If there are multiple mistakes/crossings out you should complete a new form.	Part 1: General (Ways to complete & submit your return) Para 2.1, page 5 (bullet point 2). Para 2.1, page 5 (bullet point 5).
SDLT online forms are available from the Stamp Taxes Online service	Part 1: General (Ways to complete & submit your return) Paras 2.2 & 2.3, pages 5 & 6.
The chargeable consideration for each transaction to be shown at question 10 is the open market value of the interest in land that each purchaser receives asa a result of the exchange. Code 34 only should be shown at question 12 regardless of whether any balancing cash payment was made.	Part 1: General (Special transactions) Para 3.2, page 6
The code in question 2 is needed to ensure that the right sections of the land transaction return have been completed. It is not used for any other purpose.	Part 2: Filling in the forms Notes about the questions (all transactions -Form SDLT1) Question 2, page 14
For code A it is essential that you supply further information in the section headed ‘’About Leases’’. Questions 16,17,18,19,20 & 21 should be completed but not questions 22,23,24 & 25.	Part 2: Filling in the forms Notes about the questions (all transactions -Form SDLT1) Question 2, page 15
If there are any unusual restrictions, covenants or conditions (historic or new) which have an effect on the value of the interest granted or transferred answer ‘Yes’ and give a brief description.	Part 2: Filling in the forms Notes about the questions (all transactions -Form SDLT1) Question 5, page 16
Show here the total consideration in money or money’s worth, in whatever form, given by the purchaser for the interest in land acquired. This is the figure on which stamp duty land tax is charged. The figure entered as the total consideration must Include any VAT actually payable Not include rent or premium on the grant of a new lease, returned as L at question 2. (See further guidance below.) However if any form of consideration was given for the assignment or in Scotland assignation of a lease, A at question 2, enter the amount here, question 22 does not need completing. If no consideration of any kind has been given, or consideration has been received do not enter ‘0’. Instead consider whether you should complete self-certificate form	Part 2: Filling in the forms Notes about the questions (all transactions -Form SDLT1) Question 10, page 18
SDLT 60 to register the transaction, see para 1.5 ‘Self-certification’. For most transactions the figure shown at question 10 will be the purchase price and it will be paid wholly in monetary form. See notes on question 12 for notifying consideration which is other than cash, in particular where property is transferred subject to a debt.
Requirement to notify the market value of a property at question 10 In the following situations stamp duty land tax is charged on the market value of the subject matter of a transaction rather than on the consideration given by the purchaser SDLTM04020 - when properties are exchanged, if at least one property represents a major interest in land, there will be two separate, notifiable, transactions both requiring notification of the market value of the property acquired SDLTM30220 - when the purchaser is a company connected with the vendor, for example transactions between connected companies. This requirement applies even if group relief has been claimed on the transaction and it is considered that there will be no stamp duty land tax to pay Where all or part of the consideration is in the form of shares (subject to certain exceptions) Where the transfer is in respect of employment services Where the purchaser of a shared ownership lease makes an election to pay stamp duty land tax on the market value of the property, rather than on the actual premium paid for the lease Where partnership assets have been treated as chargeable on their market value When there is an exchange of interests in the same property, for example in a sale and lease back transaction Market value is the price which the subject matter of the transaction may be expected to achieve in a sale in the open market at arms length on the effective date of the transaction, i.e. the date notified at question 4 of the land transaction return. If this transaction is: the grant of a new lease (returned as L for question 2) including, in Scotland, the exchange of missives of let, leave questions 10 and 11 blank and complete questions 16 to 25 as appropriate for chargeable consideration wholly or in part calculated on the market value of what is received, see notes at question 12 on market valuation. Note: chargeable consideration includes anything paid for assets that in law are part of the land. For example anything properly attributable to: buildings and other structures which are part of the land SDLTM04005 goodwill which forms part of the land on the sale of a business, i.e. 'inherent' or ‘adherent’ goodwill SDLTM04010 fixtures, but not chattels or, in Scotland, moveables. Chargeable consideration does not include anything properly attributable to chattels or moveables. If an amount is paid partly for land, including things that in law form part of the land, and partly for other assets such as chattels or moveables, there must be a just and reasonable apportionment of the total amount in order to arrive at the chargeable consideration for stamp duty land tax purposes. Any apportionment agreed between purchaser and seller is not conclusive.	Part 2: Filling in the forms Notes about the questions (all transactions -Form SDLT1) Question 10, pages 18 & 19
Only complete this question if VAT is charged on the transaction, for example on the sale of new commercial property or if the vendor (seller) has elected to waive exemption. Enter here the amount of VAT charged. If there is no VAT leave blank.	Part 2: Filling in the forms Notes about the questions (all transactions -Form SDLT1) Question 11, page 19
Most transactions will be completely satisfied by a monetary payment in which case the only entry will be the cash code 30. But, where relevant, up to 4 different types of consideration may be recorded in the spaces provided at question 12, for example if a transfer of equity with a balancing cash payment is being notified codes 30 and 31 should be used. Stamp duty land tax is chargeable on the total value of all forms of consideration in money or money's worth see SDLTM04140 and SDLTM80350 For transactions where stamp duty land tax is chargeable on the market value of the property acquired rather than the actual consideration paid, code 34 should be used at box 12, see guidance for code 34 below. No other code will be necessary despite the fact that a payment may have been made by the purchaser. This guidance includes shared ownership leases where the purchaser has elected to pay stamp duty land tax on the market value of the property, rather than on the actual premium paid for the lease.	Part 2: Filling in the forms Notes about the questions (all transactions -Form SDLT1) Question 12, pages 19 & 20.
Any other consideration, in money's worth, not otherwise listed here, or, as noted above, the market value of the interest in land acquired should be notified using code 34.	Part 2: Filling in the forms Notes about the questions (all transactions -Form SDLT1) Question 12, sub-heading ‘Other (such as an annuity) Code 34, page 20.
Transactions are 'linked' if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them. Please refer to the Stamp Duty Land Tax Manual for further guidance. If this transaction is linked to any other(s) answer ‘Yes’ and enter the total amount paid for all the linked transactions including any VAT. If it is not linked to any other transaction you must answer ‘No’ and leave the rest of question 13 blank. There are two methods of returning linked transactions: (i) a single form SDLT1 plus the appropriate supplementary forms This method may be used for linked transactions that: all come within the same code at question 2, either A, F, L or O and each have the same effective date, and have identical purchasers and identical vendors, and at question 9 of the SDLT1: are not claiming any reliefs at all, i.e. 'no' in the first part of question 9, or, are all claiming the same relief in part two of question 9. To notify linked transactions all within code F or code O at question 2 on a single SDLT1: enter details of the first transaction on form SDLT1 show the total consideration paid for all linked transactions at both questions 10 and 13 part 2 show the total amount of tax payable on all the transactions at question 14 Show the total number of properties being notified at question 26 Give address details of the first transaction at questions 27 onwards notify details of the other linked transactions on supplementary form(s) SDLT3 To notify linked transactions all within code A at question 2 on a single SDLT1: enter details of the first transaction on form SDLT1, including the section 'About Leases', questions 16 to 21 show the total consideration for all the linked transactions at question 13 part 2, this should be the same amount notified at question 10 show the total amount of tax payable on all transactions at question 14 Show the total number of properties being notified at question 26 Give address details of the first transaction at questions 27 onwards enter the details of the other linked transactions on supplementary form(s) SDLT4 To notify linked transactions all within code L at question 2 on a single SDLT1: Leave questions 10 and 11 of form SDLT1 blank enter details of the first transaction on form SDLT1, including the section 'About Leases', questions 16 to 25 show the total premium paid for all linked transactions at SDLT1 question 13 part 2, but if no premium applies, enter 0 show the total amount of tax for all transactions at SDLT1 question 14 Show the total number of properties being notified at question 26 Give address details of the first transaction at questions 27 onwards notify the other linked transactions on supplementary form(s) SDLT4, taking care to complete questions 24 to 27 (with 0 if not applicable) (ii) a separate form SDLT1 for each linked transaction This method must be used if at least one of the following applies. You have linked transactions that do not fall within the same code for question 2 of the SDLT1 do not share the same effective date do not have both identical purchasers and identical vendors (for example because of the connected persons rules) are claiming a relief in respect of one or more transactions but not for all are claiming different types of relief requiring different codes at question 9 part 2. To notify linked transactions on separate forms SDLT1: on each SDLT1 show the consideration only for the transaction notified at question 10 for codes A, F or O, at question 22 and/or 23 for code L on each SDLT1 show the total consideration other than rent for all linked transactions at question 13 part 2 (for code L cases where there are no premiums, enter ‘0’.) calculate the tax on the figure notified at question 10 by using the rate of stamp duty land tax appropriate to the figure shown at question 13 part 2 at question 14 show the amount of tax payable only for the transaction reported on the individual SDLT1 Apportionment of the chargeable consideration: if a single price was negotiated and paid for all the linked transactions that price should be apportioned between each of the transactions on a just & reasonable basis. There is no need to obtain professional valuations for this purpose. The purchaser may estimate their own apportionment of the value appropriate to each transaction it is advisable that evidence is retained to show how the apportionment was arrived at should enquiries be opened into the returns at a later date. For details of connected persons see Section 839 Income & Corporation Taxes Act 1988. Examples: Husband & wife are connected A person is connected with his or her brother or sister, his ancestor or lineal descendant A person is connected with a company that he or she controls and two companies are connected if the same person controls both of them. Calculation: If transactions are linked aggregate the whole consideration payable for all the transactions other than rent. Apply the appropriate rate of tax to that total. (For code L cases where the consideration includes rent, see the example at Part 2 section C question 25) Example: Jack buys a house for £240,000 and his wife Jill buys the garden of the house for £20,000, both from the same vendor and as part of a single bargain. Both land transaction returns are submitted 2 months after the filing date Jack’s return Question 10 will show £240,000 Question 13 will be ticked ‘yes’ Question 13 part 2 will show £260,000 Question 14 will show £7200, i.e. tax is charged at 3%, the rate applicable to the aggregate consideration of £260,000 Question 15 will show £7300 (£7200 + £100 fixed late filing penalty) Jill’s return Question 10 on Jill’s land transaction return will show £20,000 Question 13 will be ticked ‘yes’ Question 13 part 2 will show £260,000 Question 14 will show £600 Question 15 will show £700 (£600 + £100 fixed late filing penalty)	(all transactions -Form SDLT1) Notes about the questions (all transactions) Question 13, pages 21-23.
Residential (effective from 23 March 2006): Does not exceed £125,000 - 0% } From 1 December 2003 to 16 March 2005 Exceeds £125,000 but not £250,000 - 1% } inclusive, substitute £60,000 for £125,000, and from 17 March 2005 to 22 March 2006 inclusive, substitute £120,000 for £125,000 Exceeds £250,000 but not £500,000 - 3% Exceeds £500,000 - 4% Non-residential or mixed (effective from 1 December 2003): Does not exceed £150,000 - 0% Exceeds £150,000 but not £250,000 - 1% Exceeds £250,000 but not £500,000 - 3% Exceeds £500,000 - 4% If the chargeable consideration exceeds a threshold, the higher rate of tax is charged on the whole amount. For example consideration £125,001 tax at 1% = £1250 (ignore pence); consideration £250,001 tax at 3% = £7500 (ignore pence).	Part 2: Filing in the forms Notes about the questions (all transactions -Form SDLT1) Question 14, page 25.
Give the number of the local authority in whose area the lead property is situated. If a property straddles a local authority boundary enter the code for either, preferably the authority into whose area most of the property falls. A list of Local Authority codes is printed as an appendix.	Part 2: Filing in the forms Notes about the questions (all transactions -Form SDLT1) Question 29, page 25.
Phone number for TM Property services is 0870 740 7833.	Part 2: Filing in the forms Notes about the questions (all transactions -Form SDLT1) Question 31, page 26.
SDLT4 for additional details about the transaction, including mixed or non-residential property transactions, company purchaser, business acquisition and leases.	Part 2: Filing in the forms Notes about the questions (all transactions -Form SDLT1) Question 70 (3rd bullet), page 31
If at question 2 you have entered F or O you must not complete any of questions 16 to 25. If at question 2 you entered A, you must complete questions 16, 17, 18, 19, 20 and 21.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT1) ABOUT LEASES, page 35.
Enter the date from which the term or period of the lease runs as shown in the lease. In Scotland a lease includes missives of let that are not to be completed by the grant of a new lease. Note that on the grant of a new lease (code L) this may not be the same as the start date used in the calculation of tax on the rental element.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT1) Question 17, page 35.
This is the date that the lease is expressed to come to an end, not the break point or review date. For a periodic tenancy in England & Wales or Northern Ireland enter the date the first period comes to an end.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT1) Question 18, page 36.
Rent free period. You must answer this question if you entered A or L at question 2. If an existing lease is acquired or a new lease is granted or treated as granted and, starting from the effective date as shown at question 4, (or, if later, the term commencement date), there are any periods when the tenant will not have to pay rent, show the total number of months for such periods.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT1) Question 19, page 36.
Starting rent. You must answer this question if you entered A or L at question 2. (First part) Show here the starting rent. On the grant of a new lease or the acquisition of an existing lease: enter the current rent as at the effective date entered at question 4 or, if later, the term commencement date. But show the rent payable after the expiry of any initial rent free period if there is one.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT1) Question 20 – 1st bullet, page 36.
VAT amount. You must answer this question if you entered A or L at question 2.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT1) Question 21, page 36.
You should be aware that there is no 0% rate for a premium for a residential lease which does not exceed £125000 or for a non-residential or mixed lease which does not exceed £150000 if the average annual rent in either case is more than £600.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT1) Question 24, page 37.
Please note that the total of NPV’s from all linked grants of lease share only one threshold allowance apportioned according to the individual NPV. Example: linked commercial property leases (not successive leases), Lease A NPV £300000 Lease B NPV £600000 Total NPV £900000 Total tax payable on the leases:£900000 less £150000 x 1% = £7500. Tax due on lease A 300000/900000 x £7500 = £2500. Tax due on lease B 600000/900000 X £7500 = £5000. If there is no net present value enter 0.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT1) Question 25, page 37.
Follow notes for form SDLT1, question 1 above. The code shown at this question of form SDLT4 should be the same as the code used at question 1 of the SDLT1	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT4) Question 10, page 39.
Select one code relevant to the lease in question: Residential - R; Non residential - N; Mixed - M See also notes for SDLT1, question 16. The code you select for question 18 may not correspond with the type of property code selected at question 10.	Part 2: Filing in the forms Notes about the questions (additional details for cases involving leases- Form SDLT4) Question 18, page 40.