Finance Bill Tracking Service 2007 | Budget 2007 | Budget Notes

BN24 Stamp Duty Land Tax: payment of tax and self-certificate

Who is likely to be affected?

1   Purchasers of freehold or leasehold property, solicitors and licensed conveyancers.

General description of the measure

2   Legislation will be introduced in Finance Bill 2007 to provide that payment of the amount of stamp duty land tax self-assessed in a land transaction return will no longer be required to accompany the return. The tax will still have to be paid by the filing date for the return.

3   Provision will also be made for the SDLT self-certificate to include a declaration by the agent submitting the self-certificate on the purchaser's behalf.

Operative date

4   The measure will be operative from the date on which Finance Bill 2007 receives Royal Assent and the provision about payment will apply to any transaction which takes place on or after that date. Inclusion of the agents' declaration and electronic submission of the self-certificate will be subject to regulations to be made by HM Revenue and Customs at a later date.

Current law and proposed revisions

5   Sections 76, 80, 81 and 81A and Schedules 10 and 17A to Finance Act 2003 provide that a land transaction return must be accompanied by the amount of tax self-assessed in the return. Section 86 of Finance Act 2003 further provides that tax must be paid at the same time as the return is made.

6   Finance Bill 2007 will include clauses abolishing these requirements and replacing them with a requirement that the tax must be paid on or before the filing date for the return (that is, 30 days from the effective date of the transaction, which in most cases is the date of completion).

7   Paragraph 2 of Schedule 11 to Finance Act 2003 provides HMRC with powers to prescribe the form and content of the self-certificate. At present this must include a declaration by the purchaser that the self-certificate is to the best of his knowledge correct and complete.

8   Finance Bill 2007 will include clauses allowing HMRC to provide that, in appropriate cases, the self-certificate may alternatively include a declaration by an agent authorised by the purchaser to complete the self-certificate, or by the relevant Official Solicitor. These will be similar to the equivalent provisions for land transaction returns at paragraphs 1A and 1B of Schedule 10 to Finance Act 2003.

9   A Regulatory Impact Assessment for this measure will be published when regulations are made.

Further advice

10 If you have any questions about this change, please contact the Stamp Taxes Helpline, 0845 603 0135. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk.