Do you pay SDLT on a surrender?
Do you pay SDLT on a surrender?
A landlord may have an SDLT obligation if he or she pays its tenant an amount, either cash or other consideration to surrender its lease. Conversely, where a tenant pays a reverse premium to the landlord as acceptance of a surrender, then no SDLT is due. In all cases, SDLT should be considered at an early stage.
Can I claim back SDLT?
Yes, the basic rule is that a refund claim cannot be made more than 12 months after the filing date for the original SDLT return, ie 14 days after completion of the original purchase. However, in certain special cases, a Stamp Duty refund claim can be made to HMRC up to 4 years after the transaction concerned.
What is the penalty for not paying stamp duty?
Late payment
| Penalty date | Penalty due |
|---|---|
| 31 days after the due date for payment | 5% of the unpaid tax |
| 5 months after the penalty date (5 months and 31 days after the due date for payment) | A further 5% of the unpaid tax |
How long does HMRC have to investigate SDLT?
HMRC normally has 9 months from the filing date to tell you that they’re starting a check. They’ve got longer if you’ve changed your tax return because either: you have new information.
Do you pay SDLT on assignment of commercial lease?
You don’t have to pay SDLT or tell HMRC if you buy a new or assigned lease of less than 7 years, as long as the chargeable consideration is less than the residential or non-residential SDLT threshold. Chargeable consideration includes: the consideration given for the assignment or surrender of an existing lease.
What is the SDLT threshold?
If you buy a property for less than the threshold, there’s no SDLT to pay. The current SDLT threshold for residential properties is £125,000. There were different thresholds for residential properties from 8 July 2020 to 30 September 2021. The threshold for non-residential land and properties is £150,000.
How do I reclaim overpaid SDLT?
Apply for a refund by writing to the Stamp Duty Land Tax office and include:
- the UTRN.
- copy of the original SDLT return.
- reason why you think you’ve overpaid.
- the parts of the SDLT return which are wrong.
- revised figures and confirm the amount of refund due.
- contract for the land transaction (if appropriate)
What is an SDLT return?
What is a Stamp Duty Land Tax (SDLT) form? SDLT is a tax on transactions, not documents. When you buy a property or land, you must fill in a Land Transaction Return (SDLT1) and send it to HMRC. Your conveyancer/solicitor will normally complete the return for you as part of handling the transaction.
Can stamp duty be paid after completion?
When do I pay stamp duty? You have 14 days after you complete on the purchase of a property to file a return to HMRC and pay any stamp duty that is due. Your solicitor or conveyancer will usually calculate and pay your stamp duty bill on your behalf.
How long can HMRC Chase overpaid tax credits?
Over 12 months up to 10 years Claimants can ask HMRC to repay over any period up to 10 years without providing full income and expenditure details.
How far can HMRC investigate back?
HMRC will investigate further back the more serious they think a case could be. If they suspect deliberate tax evasion, they can investigate as far back as 20 years. More commonly, investigations into careless tax returns can go back 6 years and investigations into innocent errors can go back up to 4 years.
