Stamp Duty Land Tax (“SDLT”)
As from 1st December 2003 SDLT replaced the old Stamp Duty regime. For most clients this does not affect the amount payable, but the procedures introduced are much more rigorous, being similar to the “self-assessment” procedures utilised for Income Tax. These include:
A duty to notify “liability to tax” within 30 days from the effective date of the transaction.
A Land Transaction Return (LTR) must be completed in all cases (6 pages).
A fixed penalty of £100 for late filing (£200 if more than 3 months late). In addition a penalty is payable for late payment of the tax.
We will complete the LTR in reliance upon information received from you which means that you have ultimate responsibility for the accuracy of the information.
You must personally sign the LTR.
You must supply your N.I. number for the LTR.
Where there is more than one purchaser, the duty to pay tax is joint and several, even if the reality of the situation is that the funds for the purchase are provided by one party.
We will be your “tax agent” for the purposes of the LTR, but this does not create any agent principal relationship. The intention is that the Inland Revenue can correspond with us about the SDLT.
The new scheme is based on “process now – check later”. You may be liable to pay any shortfall from the “self-assessed” amount after any enquiry.
The Inland Revenue may make an enquiry into your transaction usually within 9 months. Generally we would deal with the enquiry on your behalf but additional legal costs will be payable for this service. Enquiries will partly be made on a “random basis” and partly on “high-risk” transactions.
There is an obligation to keep records for 6 years.
In most transactions we will complete the LTR on your behalf, using information supplied by you. Our costs for acting on your behalf in respect of this “self-assessment” procedure will be £50 (plus VAT) for freehold properties and £75 (plus VAT) for leasehold. This will not include dealing with any Inland Revenue enquiry.