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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
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Processing: Further guidance for completing forms SDLT1: Further guidance for question 13 SDLT1, linked transactions

Examples:

  • Husband and wife are connected
  • A person is connected with his or her brother or sister, his ancestor or lineal descendant
  • A person is connected with a company that he or she controls and two companies are connected if the same person controls both of them.

Calculation: If transactions are linked aggregate the whole consideration payable for all the transactions other than rent.

Apply the appropriate rate of tax to that total. (For code L cases where the consideration includes rent)

Example: Jack buys a house for £240,000 and his wife Jill buys the garden of the house for £20,000, both from the same vendor and as part of a single bargain. Both land transaction returns are submitted 2 months after the filing date

Jack’s return

  • Question 10 will show £240,000
  • Question 13 will be ticked ‘yes’
  • Question 13 part 2 will show £260,000
  • Question 14 will show £7200, i.e. tax is charged at 3%, the rate applicable to the aggregate consideration of £260,000
  • Question 15 will show £7300 (£7200 + £100 fixed late filing penalty)

Jill’s return

  • Question 10 on Jill’s land transaction return will show £20,000
  • Question 13 will be ticked ‘yes’
  • Question 13 part 2 will show £260,000
  • Question 14 will show £600
  • Question 15 will show £700 (£600 + £100 fixed late filing penalty)