Land Transaction Returns (SDLT1) - common errors

We have been closely monitoring the completed land transaction returns that have been received since 1 December when stamp duty land tax came into force.

Our initial analysis has shown that we have been able to process a high number of returns received and been able to issue the certificates (form SDLT5), to allow title to be registered, promptly. Thank you for your assistance in supplying the right information on the new forms SDLT1.

However, it is natural when completing a return for the first time that particular errors or misunderstandings can arise. To make life easier we have designed a Helpcard (PDF 42K) to help you complete the SDLT1. It includes the ten most common reasons why we issue letters asking for further information. By following these simple rules you should have fewer forms rejected. In addition, the following information will also help:

  • It is vital to enter the 'effective date' in box 4 of the SDLT1.
    The effective date for a:
    • completed transaction, whether or not by document, is the date of completion
    • contract substantially performed before completion is when it has been substantially performed (this means 90% of the consideration paid, if the purchaser takes possession, or if any rent is paid).
  • The total consideration payable must be entered in box 10.
  • A cheque (or payment) should be included with the return, if appropriate. Please ensure that the amount on the cheque tallies with the amount of tax due for the transaction at box 14. And please ensure that you complete the payslip on page 7 of the return accordingly.

Additionally:

  • please do not send any documents with the SDLT1 (other than any of the supplementary forms that may be required in specific cases SDLT2, 3 and 4). All the information needed to process the details should be on the completed return. If you are still unsure, please check this section of our website to decide if you need to submit supplementary forms with the SDLT1.
  • any cases that are not within stamp duty land tax or relate to transactions completed prior to 1 December 2003 should be sent to a Stamp Office and not to our Data Capture Unit in Netherton. Further information and addresses of our offices are on the Stamp Office Addresses page.
  • do not send your written queries to our Data Capture Unit in Netherton. The unit can only process completed returns and are not able to respond to queries. If you require an answer to a query you should either write to a Stamp Office or contact the Helpline.

As part of its ongoing support for customers, Stamp Taxes has analysed the reasons why SDLT 8 letters (containing questions relating to incorrectly completed stamp duty land tax returns) are generated.