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HMRC internal manual

Stamp Duty Land Tax Manual

Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: return obligations

Where a land transaction relates to the acquisition of a single dwelling that is a higher threshold interest, the transaction will need to be notified to HMRC and returned in a land transaction return in the normal manner.

Where the transaction (the primary transaction) relates to a higher threshold interest and another chargeable interest, the two transactions should be dealt with separately and two returns are necessary; one in respect of the higher threshold interest(s) and another in respect of the other chargeable interests acquired as part of the single bargain (FA03/SCH4A/PARA3). No return is required in respect of the ‘primary transaction’.

The chargeable consideration given in the primary transaction must be apportioned between the respective returns on a just and reasonable basis (FA03/SCH4A/PARA4). Failure to do so could, where there is a tax loss, result in interest and penalties being payable.

The normal rules about making a return or further returns in consequence of a later linked transaction (FA03/S81A) will apply where transactions involving more than one interest in the same dwelling attract the higher rate charge by virtue of FA03/SCH4A/PARA4.