Simon Howley considers the taxpayer’s obligations to make a return for stamp duty land tax purposes, even when the transaction in question may result in no tax being payable.
Every chargeable transaction on which actual stamp duty land tax (SDLT) is payable must file an SDLT return; but many chargeable transactions which do not actually attract tax have to be notified in an SDLT return as well.
When to report?
The transactions that need to be reported, and on an SDLT return, are set out in FA 2003, ss 77 and 77A. They are as follows:
- the acquisition of a freehold if the chargeable consideration for it and any linked transactions is £40,000 or more;
- the initial grant of a lease for a term of seven years or more where the premium (if any) is £40,000 or more or the ‘annual rent’ is £1,000 per annum or
