1. SDLT Hannah Mackinlay LLB MA Solicitor www.propertylaw.guru

2. IT'S NOT STAMP DUTY

3. There is no Stamp Duty There is no Stamp Duty on deeds any more But there is a new tax on land transactions A Self-assessed tax not a voluntary duty Just like all the other taxes with the same HMRC powers to investigate

4. Not a duty on docs A transfer for £255 k could be taxed at: Market value if connected company 0% if relief or exemption 1% if averaged - multiple resi. purchases 3% if standalone and up to.. 5% or more if linked with another transaction

5. Communication Clients must know it is not Stamp Duty And that it is like Income Tax Call it SDLT on everything esp. statements Make it clear that the figures stated can be reviewed by HMRC And that it isn’t part of your fee to deal with queries raised

6. The taxpayer is key Dangers of automated systems Need to ask questions of the clients If there are other Linked Transactions Connected Parties Fixtures and other consideration Other parts of the deal not revealed to you

7. SDLT5 - not finality Land Registration is not the aim of submitting an LTR Long time to catch up Warning bells being rung by HMRC More investigations likely of ordinary conveyancing transactions – Orsman v HMRC ([2012] UKFTT 227 You might end up paying the extra tax, penalties and for thecosts of the investigation!

8. ITS NOT STAMP DUTY

9. Risk management Hurlingham Estates v Wilde & Partners 1997 Enquiry window - up to 20 years New penalties regime - 30% to 100% of tax

10. Self Assessment Just like all the other taxes Voluntary Disclosures Don’t get caught underwriting the amount of the tax Or you will end up paying it! Make it clear that it is subject to enquiry or variation

11. Structure ‘A land transaction’ ‘Chargeable Interest’ Exempt interest vs. Reliefs

12. Effective Date Substantial Performance Examples

13. Commercial or Residential? Significance - Multiple property relief if Residential for example Definition is an ‘exhaustive’ one When do you apply the test? Rates of tax and Enveloped Dwellings - ATED

14. IT'S NOT STAMP DUTY

15. Linked Transactions Example - easy to miss or be misled Linked transactions, enquiries and warnings Linked even if no contractual linkage Linked even on different months Client has to self-assess if linkage But Multiple Dwelling relief for Residential properties

16. Connected Parties Example - easy to miss or be misled Care with close or extended families and non- native speakers Also businesses, companies, etc. Can be very hard to work out Don’t end up underwriting the risk

17. Self assessment What if the answer isn’t clear You aren’t acting for the taxman But you are a tax agent Voluntary disclosures? But don’t try to be too crafty

18. Consideration R v Orsman Chattels, works, cash Quantification and apportionment Goodwill Put the risk on the client, not you!

19. Risk Management ‘Arrangements’, deals, etc. Intrusive questioning? Are you the right one to make the decision Accountants involved?

20. Reliefs from SDLT Long list of possible reliefs Still notifiable if consideration exceeds threshold Right to Buy relief Shared ownership Worked examples

21. Exemptions from SDLT Not notifiable Self Assessed whether exempt Penalties for not filing a return if you got it wrong Examples

22. Conclusion Its not stamp duty! Greater responsibilities on you You end up paying the clients tax if you don’t ask the right questions Communication is key Use standard guides and checklists www.propertylaw.guru for templates and examples www.propertylaw.guru

27. IT’S NOT STAMP DUTY