Budget 2008 introduced a number of changes with the aim of reducing the administrative burden relating to Stamp Duty Land Tax (SDLT). The notification threshold has been simplified and the SDLT60 self certificate has, in effect, been abolished. When is SDLT evidence not required? No SDLT evidence is required for the following situations where the transaction was completed on or after 12 March 2008: An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition (together with any linked transaction) is less than £40,000. This includes, for example, transfers of freehold land, deeds of gift and deeds of grant of easements. This covers the noting of interests as well as their substantive registration. The grant of a lease for 7 years or more where the premium is less than £40,000 and the annual rent is less than £1,000.
The assignment or surrender of a lease where the lease was originally granted for a term of 7 years or more; and the consideration for the assignment or surrender, other than any rent, is less than £40,000.
The grant, assignment or surrender of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero-rate threshold, i.e. £125,000 for residential properties and £150,000 for commercial properties. SDLT evidence is also not required for transactions exempted under Schedule 3 to the Finance Act 2003.
When is SDLT evidence required? An SDLT5 (including submission receipts (electronic SDLT5) and third-party vendor certificates) is required for all other transactions, which are not non-major transactions. Non-major interests The acquisition of a chargeable interest other than a major interest in land remains notifiable only where there is chargeable consideration for which SDLT is due at a rate of 1% or more. The acquisition of an easement, for example, is an acquisition of a chargeable interest other than a major interest in land. So, if the chargeable consideration on it was at the rate of 1% or higher, the transaction would be notifiable. SDLT evidence is not required if the consideration is between £40,000 and £125,000 for residential land and between £40,000 and £150,000 for commercial land. General Any application being stood over by Land Registry awaiting an SDLT60 will be completed regardless of when the transaction was completed, subject to other outstanding requisitions. Land Registry is in the process of updating its internal and external guidance. Affected Practice Guides will be updated at the earliest practical opportunity. Further details of the SDLT Budget changes can be found on the HM Revenue & Customs website. |
