SDLT filing period to be reduced to 14 days from 1 March 2019
Purchasers, tenants and lenders need to be aware of imminent changes to the SDLT filing regime.
The period for a purchaser to file Stamp Duty Land Tax (SDLT) returns and pay SDLT will reduce from 30 days to 14 days for land transactions with an effective date on or after 1 March 2019.
What is the “effective date”?
This is either the date of completion (which is the effective date of most transactions), or if earlier, it is the date that “substantial performance” occurs; for example, where the purchaser takes possession of the whole, or substantially the whole, of the property before completion.
Requirement to submit a further SDLT return
Notwithstanding the changes in the SDLT filing window, the 30-day time limit is retained where a “return by letter” is required (i.e. where a further SDLT return is needed). The most important of these scenarios for a purchaser are:
- “Contingent” payments where consideration for a purchase was contingent on a particular event happening e.g. the grant of planning permission for redevelopment;
- “Uncertain” payments where consideration for a purchase was tied to the performance of a certain event e.g. the turnover of a business;
- “Linked” transactions where a notification was submitted to HMRC in respect of a transaction and because of a later linked transaction a further return is required;
- Transactions that had the benefit of an SDLT relief which is then withdrawn;
- A lease continuing after the end of a fixed term.
What are the implications?
There is a clear emphasis on all parties involved in property transactions to be mindful of the reduced period to file an SDLT return and pay the SDLT. The Revenue’s objective for the new regime is to improve efficiency of the SDLT system. In practice, purchasers and tenants will find it prudent to ensure that their solicitor is in funds on completion and has all the necessary information available to them to file the SDLT return. Lenders will need to ensure that their borrower lawyers are holding all necessary funds to pay SDLT (as they currently do) on drawdown.
It is important to reiterate that the new deadline still includes non-working days so is therefore 14 calendar days.
It should be noted that HMRC’s automatic late filing penalties remain unchanged.
The Future of Property Careers
Join to our panel discussion and Q&A with industry leaders on the range of opportunities within the property and construction sector.
Q&A: Talking the telecoms talk
Georgina Muskett and Jonathan Wills answer queries on Electronic Communications Code agreement.
Property Patter: Navigating the complexities of Pharmacy Property
Pharmacy property is a specialist area which contains many traps for the unwary.
What do the new Debt Respite Scheme Regulations mean for Landlords and Tenants?
This will provide legal protection from creditors in the form of either a breathing space or a mental health crisis moratorium.
Risk allocation in commercial leases: the High Court considers rent suspension, insurance and frustration arguments
Read our summary of the full judgement on the latest Covid arrears case.
Charles Russell Speechlys boosts private wealth offering with the hire of an international tax team
Robert Reymond will be joined at the firm by Leigh Nicoll, Emma Tyrrell and Oliver Cooper.
Building Back Better: Real Estate and Restructuring
How and why should hospitality businesses re-structure post pandemic?
Asian Legal Business, Hubbis and eprivateclient report on the firm's expansion in Hong Kong
The firm's Hong Kong office continues to expand with the relocation of Real Estate Partner Simon Green to lead the firm’s focus in Asia.
Charles Russell Speechlys advises Fudco Partnership on sale to Exponent-backed Vibrant Foods
Fudco is a family-owned business selling South Asian ethnic foods in UK and Europe.
Electrical safety standards in the private rented sector from 1 April 2021
The Electrical Safety Standards in the Private Rented Sector will apply to existing specified tenancies from 1 April 2021.
UK property market continues to thrive
Stamp Duty, Green houses and 5% deposits: The Government’s Commitment to Housebuilding Continues
We look at the current raft of measures the Government has in place to support home ownership and the housebuilding industry.
Property Patter: cohabitees and property rights - what do couples need to think about?
It is easy to drift into complicated territory when it comes to property arrangements between a couple
Charles Russell Speechlys LLP continues Hong Kong growth with the relocation of Real Estate Partner
We are delighted to continue the growth of our Hong Kong offering with the relocation of Simon Green to lead the firm’s focus in Asia.
Government consults on lifting commercial rent restrictions
As the Government consults on lifting of CRAR enforcement procedures, read our summary of what this means for landlords here.
Lockdown rent arrears: the High Court gives its (summary) view
Lockdown arrears: the High Court gives its view
The High Court's judged on a landlord's application relating to rent arrears, owed since COVID-19 hit. Read what it means here.
Hugh Gunson and Guy Bud write for Taxation on Financial institution notices
Amendments will be made to allow HMRC to request information for the purposes of collecting a taxpayer’s tax debt.
First Homes: Bringing You Up To Date
Claire Fallows sets out the latest position on the introduction of First Homes into the planning system here
Delayed Environment Bill To Return Autumn 2021
After significant delay due to the 2019 election and COVID-19 , estimates suggest the Environment Bill will become law this autumn.