Stamp Duty Land Tax


All property transfers (subject to a few exceptions) are subject to scrutiny by the Inland Revenue in accordance with the Stamp Duty Land Tax Regulations. Remortgage transactions do not give rise to Stamp Duty Land Tax unless a transfer of ownership is involved.

The Land Tax applies to property transfers whether or not Stamp Duty is payable on the property.

The Land Tax return is a 6 page document that will need to be completed and signed, prior to completion of your property transaction.

We confirm that we will complete your Land Tax Return. In order to prepare the documentation we require the following information from you:

(a) You are required to name a Lead Purchaser on the Land Tax Return. The Inland Revenue have suggested that the Lead Purchaser should be the person whose net earnings are the greatest.

Please provide us with details of your chosen Lead Purchaser as soon as possible.

(b) We confirm that we will require the Lead Purchaser's National Insurance number for insertion in the Land Tax Return.

Please provide us with the name of the chosen Lead Purchaser together with the Lead Purchaser's National Insurance number by return so that we may proceed to complete the Land Tax Return on your behalf.

All purchasers of the property will need to sign the Land Tax Return

The Land Tax Return is your responsibility

Please note that whilst we will complete your Land Tax Return no responsibility will be accepted by your Conveyancer, its agents or employees in respect of the information contained in the Land Tax Return documentation. It is your responsibility to ensure that the information which is contained in the Land Tax Return is correct. You will be liable to prosecution from the Inland Revenue in the event that you have failed to disclose information which may be relevant to the assessment of Stamp Duty Land Tax.

Guidelines for the submission of the Land Tax Return

The Stamp Duty Land Tax Return will be sent to the Inland Revenue on the day of completion of your property transaction electronically. It will not be possible for us to register your interest in the property at the Land Registry without receiving from the Inland Revenue a Stamp Duty Land Tax Certificate.

We will pay to the Inland Revenue any Land Tax due by telegraphic transfer.

Please note that it will not be possible for us to utilise mortgage funds until such time as we have a fully completed and executed Land Tax Return in our possession. Completion of your property transaction may therefore be delayed by your failure to return the Stamp Duty Land Tax form to ourselves.

Sanctions for failure to produce the Land Tax Return

The Land Tax Return together with any tax due must be forwarded onto the Inland Revenue within 30 days of completion of your property transaction. Failure to do so will result in a £100 fine with a further £200 fine after a three month delay. After a 12 month delay a fine equivalent to the Stamp Duty payment may be levied. Please note that late payments will also attract interest. Please note that no responsibility will be accepted by usr in respect of any surcharges which are levied by the Inland Revenue.

Much of the information which will be required by the Inland Revenue in respect of your Land Tax Return will be located within our file of papers. Details that will be required, amongst others, are the Sellers full names and addresses, the Sellers solicitors details, the consideration which is being paid in respect of the property together with information in respect of the Purchasers premises.

It will be a condition of your offer of mortgage that the Stamp Duty Land Tax documentation is completed and any tax paid on completion of the property transaction.

Additional charges

A considerable amount of work will need to be undertaken by ourselves in completing your Stamp Duty Land Tax Return. We anticipate that completion of the relevant documentation will take between 20 minutes to 1 hour of our Conveyancers time. Additional charges will be levied by us in this respect. We anticipate that the additional charge will amount to anywhere between £50 and £100 plus VAT per transaction. In certain circumstances, for instance in relation to commercial properties or where a new lease of domestic property is being granted, additional work may be undertaken by ourselves and further additional charges may be levied. In the event that work is undertaken by ourselves prior to or following completion of your property transaction in relation to the recreation or presentation of your Land Tax Return, an additional charge may be made by ourselves in this respect.

Additional charges will be charged at a flat rate of £130 plus VAT per hour plus a 10% proportion thereof in respect of each telephone call or letter made or received in this respect. We would anticipate that in the majority of cases completion of your Land Tax Return will not amount to an additional charge in excess of £100 plus VAT.

Rate of Tax

The money payable in respect of Stamp Duty Land Tax for residential property is calculated as follows:

Relevant consideration Percentage

Not more than £125,000 0%

£125,001 - £250,000 1%

£250,001 - £500,001 3%

£500,001 or more 4%

Properties in certain locations may attract Stamp Duty Land Tax Exemption. We will check the postcode of the property which you are purchasing with the Inland Revenue in order to ascertain whether or not the property is located in an Exempt Area.

Please note that Exempt locations only benefit from exemption when the value of the transaction does not exceed £150,000.00, failing which SDLT is payable at the rates outlined above.

The threshold for the zero rate on commercial property is £150,000. Further information in respect of the Stamp duty payable in respect of commercial properties will be provided on demand.

When is Stamp Duty Land Tax Return not required by the Inland Revenue?

An SDLT Return will be required by the Land Revenue for all land transactions which are effected for consideration and are not exempt transactions.

Examples of exempt transactions are as follows:

1. remortgages;
2. a transaction in connection with divorce where a Court Order is issued;
3. certain transactions varying Wills or entitlements on intestacy.

The above is not an exhaustive list and further information will be provided upon request in this regard.

Please note that a Stamp Duty Land Tax Return will be required by the Inland Revenue on all property acquisitions, save for the examples outlined above.

The Land Tax Return will be required even if no Stamp Duty is payable.

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