Stamp Duty Land Tax

A Practical Guide for Lawyers

This book takes a practical approach, looking at SDLT as it applies to particular transactions and dealing with issues which the property lawyer is likely to face when advising a client, whether acting in a straightforward purchase of freehold land or negotiating the structure of a complex commercial sale or acquisition.

Category: Property, Tax

In 2003, stamp duty land tax (SDLT), an entirely new tax applying to acquisitions of UK land, was introduced. Property lawyers and their tax colleagues had to learn a new set of rules and procedures as they familiarized themselves with the new regime. Several practical and legal difficulties emerged, and the system continues to change to accommodate these and other problems as they arise. This book takes a practical approach, looking at SDLT as it applies to particular transactions and dealing with issues which the property lawyer is likely to face when advising a client, whether acting in a straightforward purchase of freehold land or negotiating the structure of a complex commercial sale or acquisition. This second edition includes guidance on the many changes that have recently been made to the SDLT process, in particular to completing and filing the SDLT return itself, as well as dealing with the additions to SDLT law, such as HM Revenue & Customs' new powers to combat avoidance.

This book takes a practical approach, looking at SDLT as it applies to particular transactions and dealing with issues which the property lawyer is likely to face when advising a client, whether acting in a straightforward purchase of freehold land or negotiating the structure of a complex commercial sale or acquisition.

SDLT (2nd edition) CONTENTS

PART ONE: SDLT: AN OVERVIEW     

Key features of the SDLT regime 

Introduction 

PART TWO: THE SDLT REGIME IN DETAIL           

1.         SCOPE OF SDLT   

1.1.      Land transactions – the trigger

1.2.      SDLT on conveyancing contracts and completions       

1.3.      Substantial performance – the charge to SDLT – no more ‘resting on contract’

1.4.      Subsales and assignments of rights under contracts

1.6.      Chargeable transactions

1.7.      Chargeable consideration

1.8.      Surrender and re-grant

1.9.      Exchange relief abolished

1.10.    Options and rights of pre-emption          

2.         CALCULATING THE CHARGE TO SDLT     

2.1.      Consideration other than rent

2.2.      Relief from aggregation for collective enfranchisement by leaseholders

2.3.      Relief from aggregation for transactions entered into in pursuance of the crofting community right to buy

2.4.      Rate of SDLT on residential property - consideration other than rent

2.5.      Rate of SDLT for non-residential or mixed property - consideration other than rent         

2.6.      The charge to SDLT on leases

3.         RELIEFS       

3.1.      Introduction to SDLT reliefs

3.2.      Disadvantaged areas relief for residential property

3.3.      Sale and leaseback relief

3.4.      Group relief

3.5.      Reconstruction relief

3.6.      Acquisition relief

3.7.      Charities relief

3.8.      Relief for certain residential property

3.9.      Relief for compulsory purchases facilitating development

3.10.    Relief for land transactions entered into in fulfilment of planning obligations by a public authority or developer

3.11.    Demutualisation relief for insurance companies

3.12.    Demutualisation relief for building societies

3.13.    Relief for incorporation of limited liability partnership (‘LLP’)

3.14.    Relief for land transfers involving public bodies in the case of a re-organisation under statute

3.15.    Relief for local political constituency associations on land transfers made as a result of a parliamentary constituency re-organisation

3.16.    Relief for land transactions involving certain museums and cultural organisations

3.17.    Relief for right to buy transactions, shared ownership leases, share ownership trusts and related transactions

3.18.    Relief for certain acquisitions by a registered social landlord

3.19.    Alternative property finance relief – Sharia’a mortgages

3.20.    Relief for certain public bodies - PFI Projects    

3.21.    Relief for new zero-carbon homes           

3.22.    Miscellaneous reliefs         

3.23.    Property authorised investment funds: proposed relief for conversion of an authorised unit trust to an OEIC    

4.         LAND TRANSACTIONS INVOLVING PARTNERSHIPS              

4.1.      Background 

4.2.      Overview of the current rules for extraordinary transactions 

4.3.      Application of SDLT to partnerships – general principles      

4.4.      Application of SDLT to ordinary partnership transactions     

4.5.      Partnership transactions to which special provisions apply (‘extraordinary transactions’)           

5.         SDLT – GENERAL ANTI-AVOIDANCE MEASURES          

5.1.      Disclosure of SDLT schemes         

5.2.      SDLT general anti-avoidance rule

6.         THE SDLT REGIME - COMMENCEMENT AND TRANSITIONAL PROVISIONS     

6.1.      Commencement of SDLT Regime

6.2.      The SDLT transitional regime       

6.3.      Counterparts and duplicates        

7.         THE ADMINISTRATION AND COLLECTION OF SDLT              

7.1.      Notifiable transactions       

7.2.      The land transaction return

7.3.      Registration of land transactions

7.4.      Claims not included in the land transaction return      

7.5.      Preservation of records      

7.6.      Enquiries into returns        

7.7.      Payment of tax

7.8.      Deferring payment of SDLT in the case of uncertain or contingent consideration  

7.9.      Assessments

7.10.    Interest and penalties         

7.11.    Information powers

7.12.    Appeals        

7.13.    Collection of unpaid SDLT           

7.14.    Application of SDLT to companies          

7.15.    Application of SDLT to unit trusts           

7.16.    Application of SDLT to open-ended investment companies (‘OEICs’)

7.17.    Application of SDLT to joint purchasers

7.18.    Application of SDLT to trusts and trustees        

7.19.    Application of SDLT to persons acting in a representative capacity 

7.20.    Application of SDLT to the Crown          

7.21.    SDLT and pension funds   

7.22.    Assignment of lease - responsibility of assignee for returns   

PART THREE: THE SDLT PROCESS   

8.         THE SDLT PROCESS       

8.1.      Forms and letters in the SDLT process    

8.2.      The Forms    

8.3.      Submission and Processing of the Return          

8.4.      Completing the Forms       

8.5.      E-filing          

PART FOUR: SDLT BY TRANSACTION        

9.         SDLT BY TRANSACTION          

9.1.      Purchase of freehold          

9.2.      Purchase of existing lease 

9.3.      Grant of new lease  

9.4.      Rent reviews and rent variations 

9.5.      Sub-sales/assignments of rights   

9.6.      Sale and leaseback  

9.7.      Surrender and merger of leases    

9.8.      Exchanges    

9.9.      Carrying out of works        

9.10.    Holding over

9.11.    Options and pre-emption rights  

9.12.    Grant of Easements and Rights    

9.13.    Statutory planning etc agreements          

9.14.    Gifts and transfers at an undervalue       

9.15.    Transfers in matrimonial cases     

9.16.    Miscellaneous         

PART FIVE: SDLT GLOSSARY 

PART SIX: SDLT FORMS AND GUIDANCE NOTES

“A must for all advisers, whether they are regular or only infrequent advisers on SDLT, and particularly so for property advisers without access to colleagues able and willing to advise on SDLT planning.” 

Tax Journal
Bics
Imprint
Spiramus Press
Publisher
Spiramus Press
Language
English
Product Format
Paperback
Dimensions
230 x 156
Weight
662 grams
Publication Date
Nov 1, 2007
Number of Pages
431
ISBN
9781904905240
Edition
2
Product Format
PDF
Publication Date
May 28, 2010
ISBN
9781904905684