stamp taxes
© Outcome Tax MMIX
Stamp Taxes are payable on land, property and shares. The tax applied will depend upon the type of transaction involved.
Stamp Duty Land Tax (SDLT)
SDLT is a tax on transactions, not documents. When anyone buys a property or land, that individual must fill in a land transaction return (SDLT1) and send it to HMRC. Normally, a conveyancer or solicitor will complete the return on the puchaser's behalf as part of
handling the transaction.
Legally, the purchaser is responsible for the information submitted. We realise how important it is for our clients' peace of mind to have submissions checked and verified by an expert and so we offer a comprehensive choice of services in this sector.
We will be pleased to assist or review any submissions prepared on a purchaser's behalf, or we can prepare and submit the necessary documents on behalf of our clients.
Once a return has been processed and the appropriate amount of tax has been paid, a 'land transaction return certificate' (SDLT5) is issued to the purchaser by HM Revenue & Customs. This replaces the old impressed stamp. This document is essential for the Land Registries in UK and Northern Ireland, or for the Registrars of Scotland when applying for registration of title or documents.
Stamp Duty Reserve Tax (SDRT)
SDRT was introduced in 1986 to deal with transactions in shares where no instrument of transfer is executed and which are therefore outside the scope of Stamp Duty. It is a transaction tax, charged on ‘agreements to transfer chargeable securities’, unlike Stamp Duty which is charged upon documents.
SDRT now accounts for the majority of taxation collected on share transactions effected through the UK's Exchanges such as the London Stock Exchange. The majority of this taxation is collected automatically, although payments are also collected for "Off Market Payments" and other circumstances where automatic collection of the correct amount of tax cannot take place.
We offer advice and guidance in each of these areas of taxation, from general enquiry through to form completion, for any of our clients needing these services.