What is SDLT?
Stamp Duty Land Tax, which is often abbreviated to SDLT, is a tax that is payable on land transactions where there is an acquisition of a chargeable interest.
A “chargeable interest” includes properties (amongst other interests). A purchase of a property or a grant of a lease in respect of a property may therefore attract SDLT.
Certain interests are also exempt from SDLT.
What are the recent changes?
Prior to 1 March 2019, a buyer was required to file a SDLT Return and pay any tax due within 30 days of completion of the transaction.
However, from 1 March 2019, the deadline has been reduced to 14 days.
What precautionary measures can be taken to ensure that the deadline is not missed?
It is normally the buyer’s solicitor who will deal with the submission of the SDLT Return and the payment.
Buyers can however make sure that they send the appropriate funds to their solicitor in good time and ahead of completion so that the Return can be filed and the SDLT paid on or soon after completion.
What happens if the deadline is missed?
If the Return is not filed and the SDLT is not paid on time, the buyer may have to pay a penalty and interest.
Please note that the above is only a summary of the change in law. It should not be construed as tax advice. Should you require such advice, we would recommend that you contact your accountants.
If you wish to discuss property sales and acquisitions generally or the grant of leases, please contact Foskett Marr Gadsby & Head LLP’s Property Teams, based in Epping and Loughton, on 01992 578 642. Further details on https://www.foskettmarr.co.uk/index.php/our-team/commercial-property-solicitor-essex/ and https://www.foskettmarr.co.uk/index.php/our-team/residential-conveyancing-essex/.