SDLT 1: Over the obstacle course

What to do in the event of delays or errors in processing stamp duty land tax applications: guidance following discussions between the Society and the Inland Revenue

The Journal, February 2004, page 52

As you will be aware, SDLT, introduced on 1 December 2003, has created a number of difficulties. In the months preceding the introduction of the new tax, representatives of the Law Society of Scotland were actively engaged with senior Inland Revenue officials in an attempt to mitigate many of the potential problems the tax raises for solicitors in Scotland. For example, the special arrangements for personal presentation in Edinburgh are a direct result of the co-operation between the Society and the Inland Revenue. However, the Society is aware of the remaining problems being encountered and is working with the Inland Revenue in an attempt to resolve these.

The Inland Revenue have requested that the following information is passed on to solicitors in Scotland:

Errors in Revenue certificates

Delays have been experienced in the receipt of Inland Revenue SDLT certificates.

If you have not received an SDLT certificate within 7-8 working days of submitting the SDLT return, first establish whether any cheque sent in with the SDLT return has been cashed.

If the cheque has been cashed, this means that a certificate has been issued (and the certificate number will be written on the back of the cheque). Phone the SDLT enquiry line on 0845 603 0135 and select option 3 from the menu. This will put you through to enquiry line staff who have access to the database of returns submitted, and should be able to tell you when the certificate was issued.

If more than three working days have elapsed since the certificate was issued and it has still not been received, send a copy of the SDLT return by DX or fax to Debbie Smith in the Newcastle Stamp Office and she will be able to advise what action to take to arrange for an SDLT certificate to be issued as soon as possible.

Debbie Smith’s contact details are: Newcastle Stamp Office, FAO Debbie Smith, 15th Floor, Cale Cross House, 156 Pilgrims Street, Newcastle upon Tyne NE1 6TS (tel 0191 261 7468; fax 0191 261 7569; DX 61021 Newcastle).

If the cheque has not been cashed, or no cheque was sent because no duty is due, contact Debbie Smith as above. Please do not stop an uncashed cheque.

Errors in Revenue certificates

If you are aware that an Inland Revenue certificate which you have received is incorrect or incomplete, when sending your documents for registration please include a copy of the SDLT return and a letter pointing out where the certificate does not tie up with the return, or the information which is missing.

In many cases this will allow registration to proceed. If the Keeper indicates that despite the explanation provided, the certificate cannot be accepted, please contact Debbie Smith at the Newcastle Office, who will be able to arrange for a replacement certificate to be issued.

Common mistakes in returns

It is essential that the effective date of the transaction is included in the SDLT return, as without that date the return cannot be accepted by the Inland Revenue for processing.

Take care to include the whole of the DX address, not just the number in box 62 (agents’ DX number) as otherwise return of the certificate to you will be seriously delayed.

Do not include a Legal Post number in box 62. The Inland Revenue cannot currently return documents by Legal Post and including a Legal Post number in box 62 may seriously delay the return of the certificate.

You must keep a copy of the SDLT return. This is a requirement of the legislation and will also be required in order to trace missing or delayed certificates.

Delays to stamp duty documents

Delays are being experienced in the stamping and return of pre-SDLT documents.  We understand that some batches of documents sent by Edinburgh Stamp Office to London Stamp Office for stamping in London were seriously delayed in transit, but are now being dealt with in London.

If you submitted documents to Edinburgh Stamp Office between 28 November and 8 December 2003 these may be included in those batches of documents, which we understand should all have been stamped by Monday 26 January.

Pre-10 July 2003 contracts

A document executed after 1 December 2003 pursuant to a contract entered into pre-10 July 2003 is subject to stamp duty not SDLT, provided the contract has not been varied.

The Inland Revenue have confirmed that you should include a copy of the contract when sending the contract for stamping, but no further proof is normally required that the contract was entered into before 10 July 2003 and has not been varied.

The Law Society of Scotland will continue to liaise with the Inland Revenue to resolve any outstanding issues. Updated information will be made available via the Society’s website (www.lawscot.org.uk) or by fax. The website also contains a series of frequently asked questions, the answers to which have been approved by the Inland Revenue. If you have any further queries, please speak to either Linsey Lewin or Stuart Drummond at the Law Society of Scotland.