Submission of your SDLT return

Although most people still talk about Stamp Duty, this was in fact abolished for property transactions in 2003 and was replaced by Stamp Duty Land Tax (SDLT).  Until that time leases, transfers and sometimes even contracts needed to be presented to the Inland Revenue for ink stamps to be physically marked on the document.  These marks were evidence that Stamp Duty had been paid.

The SDLT regime is slightly different. Documents no longer need to be presented for stamping but the Inland Revenue will issue a certificate when the tax has been paid.  Since 2018, Wales has had its own system in place and Land Transaction Tax (LTT) is payable to the Welsh Revenue Authority.

Whereas Stamp Duty was effectively a tax on documents, SDLT (or LLT in Wales) is a form of personal taxation. Put simply it is a tax on tax payers based on the consideration of the land transaction in question. It is therefore essential that you make us aware of the circumstances of the transaction, the nature and amount of the consideration, the existence of any other connected parties or linked transactions and the existence of any other payments or non-cash consideration, so that the correct consideration is inserted into the Land Transaction Return. The purchaser or purchasers are personally responsible for paying the tax and for submitting a Land Transaction Return to the Inland Revenue or Welsh Revenue Authority.

Stamp Duty Land Tax or Land Transaction Tax is self-assessed, just like Income Tax and other taxes, and can be the subject of an investigation by HMRC/WRA years later.  If HMRC/WRA feel more tax is payable then they can add penalties of up to 100% of the tax.  The figure we have quoted on your completion statement is NOT guaranteed.  HMRC/WRA in due course might assess that more SDLT is payable on the transaction (or any later or earlier linked transaction) and in that case you will be responsible for paying the extra tax and for the fees and costs of dealing with any negotiations with HMRC/WRA.

We have completed all sections of the form to the best of our knowledge and from the information that we have available to us.  Because, however, the return contains a personal declaration from you (just like any other tax return) it is very important that you check through the form for any errors before signing it and returning it to us.

It is your responsibility to check that the form is correct. We are not liable for any mistakes that are made on the form which results in the incorrect SDLT being paid. It is you who will be liable to make up any shortfall of tax due which could arise at a later date. If it is discovered at a later date that the incorrect amount of tax was paid, and therefore more is due, HMRC/WRA may decide to penalise you with penalty and interest charges.  By signing the form you are agreeing that all the information on the form is correct and discharging us from any liability in relation to incorrect information submitted to the Inland Revenue or WRA.

We are happy to discuss your requirements with you and to advise in general terms on all aspects of the transaction and the estimated legal cost. Please either contact us by telephone or email us at:

CALL US: 0345 370 1000

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