Article

1 August 04

SDLT penalties alert

Procedures to be followed by the Inland Revenue in future where stamp duty land tax returns are incomplete

Readers will be aware that on 19 July 2004 the SDLT “light touch” arrangements ceased and computer processing of some SDLT returns started (see July Journal, page 59).

Under “light touch”, certificates have been issued in many cases where information was missing. That has now stopped, and there are two different procedures depending on whether the return is processed manually or by computer.

For forms processed manually, either an SDLT certificate will be issued, or, if there is information missing, the SDLT return will be sent back to the person submitting it with a request for missing information and will have to be amended and resubmitted. A penalty will be charged if the amended SDLT return is not submitted within 30 days from the effective date (i.e. there is no extension of time if the return is sent back to you).

For computer processed forms, either a certificate will be issued or the Revenue will issue an SDLT 8 form with a request for further information. The information can be faxed back to the Revenue or provided by phone, but again has to be received by the Revenue within 30 days of the effective date.

SDLT legislation provides that penalties are chargeable even if no SDLT is payable (for example because of disadvantaged areas relief, or because the consideration is below £60,000/£150,000. (The Society is pressing the Revenue to consider an amnesty on penalties where no SDLT is due.)

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