This is the registration manual for 1979 casework.
Do not under any circumstances use the information here when settling 2012 casework. This resource has been archived and is no longer being updated. As such, it contains many broken links. Much of the information contained here is obsolete or superseded.
L50 Stamp Duty
50.2 Date of execution
In conveyancing terms, the date of execution of a deed is the date upon which a deed is subscribed. For stamp duty purposes only, the date of execution is now defined as the date on which the deed is delivered. This definition resolves a long-standing debate about the meaning of the date of execution in Scotland in relation to stamp duty, but two complications remain. Firstly, delivery does not necessarily mean the handing over of the deed. A mere indication by the seller that they are bound by the terms of the deed can amount to delivery. (In practice, such an indication will usually take the form of handing over the deed to the purchaser in exchange for the purchase price). The other complication is that if the deed has been delivered subject to conditions, it will not be treated as executed until those conditions have been fulfilled.
The definition applies to documents executed (as defined) on or after 8 December 1993.
50.3 Stamping of writs
Parliament determines whether or not a writ is liable to stamp duty, and if so the amount payable. The threshold for transactions attracting stamp duty has changed considerably over the years. At present stamp duty is calculated on transactions where the consideration is over £60,000.
50.4 Finance Act certificates
Transactions with a consideration of £60,000 or less do not attract stamp duty. To obtain the exemption from duty, conveyances must contain an appropriate Finance Act certificate, first introduced by the Finance Act 1910. Certificates need not be in gremio and are also competent when endorsed on writs and subscribed by the granter(s) (but not by the agent), together with any consenter conveying their interest in the property. The signatures of consenters, such as heritable creditors or spouses under Matrimonial Homes legislation, are not necessary.
The statutory wording of the certificate is:
- ‘I / we certify that the transaction hereby effected does not form part of a larger transaction or of a series of transactions in the respect of which the amount or value or aggregate amount or value of the consideration exceeds £60,000.’
Stamp duty is charged at an abated rate on transactions where the total value exceeds £60,000 but is less than the amount specified in the relevant statute (see Stamp Duty Rates at 50.6). To take advantage of the abated rate, the deed must include a Finance Act certificate in the above style, but amended to state the relevant tax threshold.
The Inland Revenue recommends and prefers the full version of the certificate although the shortened version ending at the word ‘transactions’ is acceptable in sale situations. The certificate should conform reasonably closely to the statutory form. A double negative, for example, is not acceptable.
In voluntary conveyances where the stamp duty requires to be adjudicated and there is difficulty in accurately determining the value of the property, the Inland Revenue is prepared to accept a certificate in the following terms:
‘I/We certify that the transaction hereby effected does not form part of a larger transaction or of a series of transactions.’
50.5 Exempt categories
Before the introduction of the Stamp Duty (Exempt Instruments) Regulations 1987, many transactions attracted a minimum duty of 50 pence. Further, where the relationship between the granters and grantees were husband/wife, brother/sister those transactions and others required to be lodged with the Inland Revenue for adjudication.
The regulations apply to instruments executed on or after 1 May 1987 that effect the conveyance or transfer of property of any description that fall within the categories below.
- The vesting of property subjects to a trust in the trustees of the trust on the appointment of a new trustee, or in the continuing trustees on the retirement of a trustee.
- The conveyance or transfer of property, the subject of a specific devise or legacy to the beneficiary named in the will (or his nominee)*.
*Note: Transfers in satisfaction of a general legacy of money should not be included in this category (see category D). - The conveyance or transfer of property which forms part of an intestate’s estate to the person entitled on intestacy (or his nominee)*
.*Note: Transfers in satisfaction of the transferee’s entitlement to cash in the estate of an intestate, where the total value of the residuary estate exceeds that sum should not be included in this category (see category D).a)Appropriations in or towards satisfaction of a general legacy of money (section 84(4) Finance Act 1985).
b)Appropriations in or towards satisfaction of any interest of a surviving spouse in the intestate’s estate (section 84 (5) Finance Act 1985).
c)Appropriation in Scotland in or towards satisfaction of the right of a husband to jus relicti, of a wife to jus relictae or of children (including adopted children) or remoter issue to legitum (Section 84 (7) Finance Act 1985).Transfers within these descriptions are no longer required to be adjudicated if they are certified within category D.
- The appropriation of property within section 84(4) of the Finance Act 1985 (death: appropriation in satisfaction of a general legacy of money) or section 84(5) or (7) of that Act (death: appropriation in satisfaction of any interest of surviving spouse and, in Scotland, also of any interest of issue).
- The conveyance or transfer of property which forms part of the residuary estate of a testator to a beneficiary (or his nominee) entitled solely by virtue of his entitlement under the will.
- The conveyance or transfer of property out of a settlement in or towards satisfaction of a beneficiary’s interest, not being an interest acquired for money or money’s worth, being a conveyance or transfer constituting a distribution of property in accordance with the provisions of the settlement.
- The conveyance or transfer of property on and in consideration only of marriage to a party to the marriage (or his nominees) or to trustees to be held on the terms of a settlement made in consideration only of the marriage*.
*Note: A transfer made to the husband or wife after the date of the marriage is not within this category unless it is made pursuant to an ante-nuptial contract, although it may fall within category L. - The conveyance or transfer of property within section 83(1) of the Finance Act 1985 (transfer in connection with divorce etc.)
- The conveyance or transfer by the liquidator of property which formed part of the assets of the company (or his nominee) in or towards satisfaction of the shareholder’s rights on a winding-up.
- The grant in fee simple* of an easement in or over land for no consideration in money or money’s worth.
*Note: Category J is not relevant to Scotland; it is used in England and Wales. - The grant of a servitude for no consideration in money or money’s worth.
- The conveyance or transfer of property operating as a voluntary disposition inter vivos for no consideration referred to in section 57 of the Stamp Act 1891 (conveyance in consideration of a debt etc.)*.
*Note: Gifts of property within this category are no longer required to be adjudicated if they are so certified. Those transfers of property subject to or in satisfaction of a debt which are transfers on sale liable to ad valorem duty are not within this category. - The conveyance or transfer of property by an instrument within section 84(1) of the Finance Act 1985 (death: varying disposition)*.
*Note: Transfers within this category are no longer required to be adjudicated if they are so certified.
To benefit from the 1987 regulations, agents must include an Exemption Certificate in place of the Finance Act Certificate.
The suggested form of words is:
‘I/we certify that this instrument falls within category ... * in the schedule to the Stamp Duty (Exempt Instruments) Regulations 1987.’
*Category letter A to M should be inserted.
An instrument falling within more than one category will be regarded as exempt if correctly certified for either category or both. The certificate must be included in, endorsed, or attached to the instrument. Endorsement after execution is permissible. Any attached certificates will require to comply with the Requirements of Writing (Scotland) Act 1995 for ordinary annexations (see chapter 13). Where the instrument effects a conveyance or transfer of land, the certificate should preferably not be attached to the instrument but be included in or endorsed upon it. An endorsed or attached certificate may be signed by a solicitor as agent, provided the signatory’s designation appears after the signature.
50.6 Stamp Duty Rates
Since 1997 there have been various changes to stamp duty payable on considerations over £60,000 and these changes are outlined in the following paragraphs.
The Budget on 2 July 1997 increased the rate of Stamp duty payable and applies to documents executed on or after 8 July 1997.
| Stamp duty rates for deeds executed on or after 8 July 1997 and before 23 March 1998 | |
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1% of consideration (rounded up to nearest £100) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 1.5% of consideration (rounded up to nearest £100) F.A.C for £500,000 |
| Uncertified Transfers | 2% of consideration (rounded up to nearest (£100) No F.A.C. |
The budget on 17 March 1998 increased the rates of stamp duty on transfers of property for more than £250,000. The new rates apply to documents executed on or after 24 March 1998.
Stamp duty rates for deeds executed on or after 24 March 1998 and before 16 March 1999 | |
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1 % of consideration (rounded up to nearest £100) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 2% of consideration (rounded up to nearest £100) F.A.C. for £500,000 |
| Over £500,000 | 3% of consideration (rounded up to nearest £100) No F.A.C. |
The budget on 9 March 1999 proposed increases in the rates of stamp duty payable on the transfer of property for more than £250,000.
The new rates apply to documents executed on or after 16 March 1999.
Stamp duty rates for deeds executed on or after 16 March 1999 and before 1 October 1999 | |
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1% of consideration (rounded up to nearest £100) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 2.5% of consideration (rounded up to nearest £100) F.A.C. for £500,000 |
| Over £500,000 | 3.5% of consideration no F.A.C. |
The Finance Act 1999 introduced new penalties and interest charges for deeds stamped late and provided that duties be rounded up to the nearest £5. It also increased the fixed stamp from 50p to £5. The types of deed involved are listed at the end of this chapter.
The new rates apply to documents executed on or after 1 October 1999.
Stamp duty rates for deeds executed on or after 1 October 1999 and before 28 March 2000 | |
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1% of consideration (rounded up to nearest £5 of stamp duty payment) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 2.5% of consideration (rounded up to nearest £5 of stamp duty payment) F.A.C. for £500,000 |
| Over £500,000 | 3.5% of consideration no F.A.C. |
New penalties for late stamping are applied to deeds executed on or after 1 October 1999 (section 109(1)). If executed within the UK, the deed must be stamped within 30 days after the date of execution (see Date of execution for the definition of ‘date of execution’ in this context). If executed outwith the UK, the 30 day period begins upon the first day of first receipt of the deed in the UK. If the deed is presented for stamping within one year after the end of the 30 day period, the maximum penalty is £300 or the amount of the unpaid duty, whichever is less. If the deed is presented for stamping later than one year after the end of the 30 day period, the maximum penalty is £300 or the amount of the unpaid duty, whichever is greater. Penalty is not payable if there is a reasonable excuse for the delay in presenting the instrument for stamping.
The Keeper assumes without further enquiry that any deed which has been stamped or noted by the Stamp Office bears the correct penalty.
Where instruments executed on or after 1 October 1999 are stamped late, in addition to any penalty charged, interest will be due on the unpaid original stamp duty (section 109(1)). The rate of interest is to be prescribed by the Treasury. Once calculated, the interest is to be rounded down to the nearest £5 and will only be payable if the rounded down amount is £25 or more. Interest will be payable whether or not there is good reason for the delay in stamping the deed.
Again, where the deed has been seen by the Stamp Office, the Keeper will assume, without further enquiry, that the correct interest charge has been paid.
The budget on 21 March 2000 announced changes to Stamp duty payable on transfers of property for more than £250,000.
The new rates apply to documents executed on or after 28 March 2000.
| Stamp duty rates for deeds executed on or after 28 March 2000 | |
| £60,000 + under | 0% Stamp duty F.A.C. for £60,000 |
| Over £60,000 but not more than £250,000 | 1% of consideration (rounded up to nearest £5 of stamp duty payment) F.A.C. for £250,000 |
| Over £250,000 but not more than £500,000 | 3% of consideration (rounded up to nearest £5 of stamp duty payment) F.A.C. for £500,000 |
| Over £500,000 | 4% of consideration no F.A.C. |
50.7 Leases
The formula for calculating the amount of stamp duty payable on leasehold property is slightly different.
Stamp duty on the assignment of an existing lease is charged in the same way as freehold. On the grant of a new lease, duty is charged separately on the premium (at the sale rate as for a sale) and on the average annual rent (under a scale of rates varying with the length of the term). If duty is payable on both the rent and the premium under a lease, the stamp duty is calculated separately then added together, with the total rounded up to the next multiple of £5.
The rates in the table following are unaffected by the Finance Act 2000, which only affects new leases of up to 7 years duration (or of indefinite term). To help both tenants and landlords, the threshold for stamp duty charge was increased from £500 to £5000 on the annual rent. In leases of this duration, where no lease premium is involved, tenants will not need to have such leases stamped, and landlords will not need to have the counterparts stamped. The new rates apply to documents executed after 28 March 2000, unless the document results form the exercise of an option, an assignment, or further contract made after 21 March 2000.
No certificate of value is appropriate where the premium exceeds £500,000 and duty is payable at the rate of 3.5% rounded up to the next £5.
Note: if the average rental is more than £600, a certificate of value for £60,000 cannot be included in the document. A certificate of value of £250,000 may be included and duty will then be worked out at 1% on the premium.
The rate of duty payable will vary according to the length of the period. Here is a list of the different rates:
LENGTH OF PERIOD | RATE OF DUTY |
| Not more than 7 years (includes exactly 7 years) | 1% |
| More than 7 years but not more than 35 years | 2% |
| More than 35 years but not more than 100 years | 12% |
| Over 100 years | 24% |
Example
A flat is leased for a premium of £125,625 on a 19 year lease at an average annual rent of £575. The amount of stamp duty is:
- Duty of 1% on the premium = £1,256.25
Duty of 2% on the rent = £11.50
Total = £1,267.75
Rounded up to nearest £5 = £1,270.00
The rent for the whole period of the lease is added up and the total divided by the number of years (or part years) of the lease. If any part of the period has expired before the date of execution of the lease or date of conclusion of missives of let, this is not included in the calculation of the average annual rent.
Example
| A lease for 99 years commenced on 1st January 2000. | |
| The annual rent is: | |
| |
| |
| |
| The date of execution is 14th March 2000 so 73 days of the term have expired before execution | |
| The average annual rent is worked out as follows:- | |
| 1 year less 73 days @ £50 = | £40 |
| (£50 ¸ 365 X 292) | |
| 32 years @ £50 = | £1,600 |
| 33 years @ £100 = | £3,300 |
| 33 years @ £150 = | £4,950 |
| Total rent payable for the remainder of the period from the date of execution | £9,890 |
| Average annual rent = (Total rent / period still remaining) | |
| £9,890 / 98 years 292 days = | £100.10 |
| Duty charged at 12% = | £12.01 |
| Total rounded up to nearest £5 = | £15.00 |
An agreement for lease is liable to stamp duty as if it were an actual lease. If a lease is subsequently granted which is in conformity with the agreement, or which relates to substantially the same property and terms of years as the agreement, the duty on the lease is abated by the amount of duty already paid on the agreement.
If an agreement for lease is made on or before 9 March 1999, but the lease granted as a result of the agreement is not granted until 16 March 1999 or later, the old rate of duty will apply to the agreement. The lease itself will also be liable if the agreement constitutes a binding contract to grant the lease. Any duty already paid on the agreement will be credited against the duty payable on the lease if the conditions in section 75 of the Stamp Act 1891 are met (agreements for not more than 35 years to be charged as leases).
50.7.2 Agreements to renounce leases
Deeds of renunciation are chargeable to ad valorem duty. But where there is no deed and a lease is surrendered or renounced by operation of law, up till now no liability for stamp duty has risen. From 8 December 1993, any renunciation of a lease, which is not a separate deed of renunciation, will attract stamp duty if the facts are represented in another document, e.g. a letter.
This is designed to close a stamp duty loophole which was being exploited south of the border and it is unlikely to have much relevance to the Agency. It applies only to voluntary renunciation by agreement between landlord and tenant; hence it does not affect the termination of leases by other means, e.g. irritancy. For further details on irritancies in leases, see Termination of leases.
50.8 Stamp duty exemption for disadvantaged areas
Section 92(1) of the Finance Act 2001 makes provision for an exemption from stamp duty on certain transactions in designated disadvantaged areas. This provision takes effect for deeds executed on or after 30 November 2001. 75 areas in Scotland have initially been designated, mostly within the major cities. The determination of whether a property lies in a designated area will be made by the Stamp Office according to postcode.
Since 10 April 2003, when the Stamp Duty (Disadvantaged Areas) (Application of Exemptions) Regulations 2003 took effect, the exemption has been applied differently for deeds executed on and after that date, depending upon whether the property affected by the conveyance or transfer is residential or commercial.
50.8.1 Deeds executed prior to 10 April 2003
Scope of exemption
The exemption applies to conveyances of subjects wholly or partly within designated areas at considerations exceeding £60,000 but not exceeding £150,000, in respect of both residential and commercial property. The exemption also applies to lease premiums within the same limits but not to any duty payable in respect of the rent in such a lease. Where subjects are only partly within a designated area the stamp duty will be calculated by apportioning the consideration between the part within the designated area and the remainder.
The exemption does not apply to any instruments subject to the £5 fixed duty.
Certification and adjudication of deeds
A deed must be certified to the Stamp Office as falling within the exemption. Whilst the certificate does not need to be within the body of the deed, the Inland Revenue recommended the use of a certificate within the deed in the following terms: -
"I / We hereby certify that this instrument is exempt from stamp duty by virtue of the provisions of section 92 of the Finance Act 2001"
Whether or not the deed contains such a certificate, it must be lodged with the Stamp Office for adjudication. If the Stamp Office are satisfied, the deed will be stamped with a denoting stamp which indicates that it has been subject to adjudication.
Registration implications
Every deed, bearing to benefit from the exemption, and executed on or after 30 November 2001, but prior to 10 April 2003, whether for residential or non-residential property, must bear a denoting stamp before it may be accepted for registration or recording. Where a deed is so stamped the Keeper will assume without further enquiry that it is correctly stamped. Where it is claimed that the deed benefits from the exemption but no denoting stamp appears on the deed, the normal procedures for incorrectly stamped deeds will apply.
50.8.2 Deeds executed on and after 10 April 2003
Scope of exemption
In respect of conveyances executed on and after 10 April 2003, the £150,000 limit for relief outlined at paragraph 50.8.1 continues to apply but only to conveyances or transfers of residential property, although it should be noted that the rental element of residential leases is also eligible for relief.
In contrast, full relief from stamp duty is available in respect of conveyances or transfers of commercial, non-residential property, executed on and after 10 April 2003, in consequence of the Stamp Duty (Disadvantaged Areas) Regulations 2003. For non-residential properties, such full relief is available for both the rental element of leases and for any premium. Where subjects are only partly within a designated area the stamp duty will be calculated by apportioning the consideration between the part within the designated area and the remainder.
Certification for residential property within disadvantaged areas
A deed must be certified to the Stamp Office as falling within the exemption. Whilst the certificate does not need to be within the body of the deed, the Inland Revenue (per Statement of Practice 1/2003) recommends the use of a certificate within the deed in the following terms: -
"I / We hereby certify that the transaction effected by this instrument does not form part of a larger transaction or series of transactions in respect of which the amount or value of the consideration exceeds £150,000 and that stamp duty is not chargeable thereon by virtue of the provisions of sections 92 and 92A of the Finance Act 2001"
Whether or not the deed contains such a certificate, it must be lodged with the Stamp Office for adjudication. If the Stamp Office is satisfied, the deed will be stamped with a denoting stamp, which indicates that it has been subject to adjudication.
Certification for non-residential property within disadvantaged area
A deed must be certified to the Stamp Office as falling within the exemption for non-residential properties. The Inland Revenue has recommended the use of the following certificate within the body of the deed:
"I / We hereby certify that this is an instrument in respect of non-residential property on which stamp duty is not chargeable by virtue of the provisions of section 92 of the Finance Act 2001".
Whether or not the deed contains such a certificate, it must be lodged with the Stamp Office for adjudication. If the Stamp Office is satisfied, the deed will be stamped with a denoting stamp, which indicates that it has been subject to adjudication.
Registration implications
Every deed executed on or after 10 April 2003 bearing to benefit from either the exemption for non-residential or residential property must bear a denoting stamp, indicating it has been subject to adjudication, before it may be accepted for registration. Where it does so, the Keeper will assume that it is correctly stamped without further enquiry. Where such an exemption is claimed but no denoting stamp appears on the deed, the procedures for incorrectly stamped deeds apply.
50.9. Intentionally blank
50.9.1 Unstamped writs
The Inland Revenue have agreed that, in certain cases, a disposition or notice of title may be stamped after it has been recorded. When sending in such a writ for recording, the agents must enclose a copy of the letter sent to them by the Inland Revenue agreeing to the subsequent stamping of the writ. In these cases, re-recording after stamping is not necessary.
Section 6 of the Administration of Justice (Emergency Provisions) (Scotland) Act 1979, provided that from 23 February 1979 until a date to be prescribed (28 June 1979) any writ liable to stamp duty might be recorded in the Sasine Register, the Register of the Books of Council and Session and the Personal Registers without the writ being duly stamped, provided that it was duly stamped within 3 months of its recording or such later time as the Commissioners of the Inland Revenue might allow.
50.9.2 Over-stamped writs
It is not the duty of the Agency to be concerned with any writ which is over-stamped. Any case of over-stamping should only be discussed with the agent on approval from Legal Services.
50.10 Conveyances to charities
Section 129 (1) of the Finance Act 1982 provides that where any conveyance, transfer, or lease is made or agreed to be made to a body of persons established for charitable purposes or the trustees of a trust so established or to the trustees of the National Heritage Memorial Fund, no stamp duty is chargeable on the instrument by which the conveyance, transfer, or lease, or the agreement for it, is effected, as from 22 March 1982.
Such instruments shall not be treated as duly stamped unless they are stamped with a stamp denoting that they are not chargeable with any duty.
50.11 Dispositions of licensed premises
Dispositions executed prior to 23 April 2002
The following paragraphs are taken from a circular, dated 16 December 1959, issued by the Inland Revenue for the guidance of solicitors:
In the case of a negotiated purchase of a licensed hotel or public house for a cumulo price covering heritage, goodwill and chattels, the stamp duty position is as follows:
There is authority for the view that the goodwill of licensed premises is in most cases wholly, or mainly, heritable and that in so far as it is heritable it passes to the purchaser by the disposition of the property whether it is expressly referred to in the disposition or not. However, in order to avoid the delay and inconvenience which is likely to arise if dispositions of licensed premises have to be lodged for adjudication of the stamp duty to enable an enquiry and valuation to be made by the District Valuer, it has been decided that where no special circumstances arise the case may be settled without adjudication on the basis explained below which concedes a measure of moveable or personal goodwill. In any dispute, of course, the facts would have to be determined.
(a) A disposition of the whole subjects of sale, i.e. premises, goodwill, and all moveable fittings, equipment, furniture etc., as detailed in the missives, is liable to ad valorem duty on the whole price agreed upon in the missives.
(b) a disposition of the premises and goodwill of the business without reference to corporeal moveables is charged with ad valorem duty on the total price agreed upon in the missives, less the part applicable to corporeal moveables.
(c) a disposition of the premises and of the ‘heritable goodwill’ or ‘goodwill of the business so far as heritable’ is chargeable with ad valorem duty on the price applicable to the premises and heritable goodwill.
(d) a disposition of the premises without any reference to goodwill is chargeable with ad valorem duty applicable to the premises and heritable goodwill.
A disposition in the form referred to in (a) and (b) above will be accepted for stamping immediately if it shows a consideration of 70% of the cumulo price shown in the missives. As an alternative, to meet the case of larger hotels and other licensed premises with valuable furnishings and moveable equipment, the part of the price applicable to corporeal moveables may first be deducted and ad valorem duty will then be accepted on a consideration representing not less than 75% of the balance. In such a case, the applicant must be prepared to justify the price allocated to corporeal moveables, for example, by producing an inventory, or an independent valuation.
This method of assessment concedes an element of moveable goodwill and is designed to ensure that duty is paid on a reasonable figure while avoiding the delay of enquiring in every individual case. It has no legal force as an apportionment of the price. The appropriate certificate of value to be inserted in the disposition is that based on the cumulo price (not on the 70% or 75%) less only the part of the price attributable to corporeal moveables (or ‘goods, wares and merchandise’) (See sections 34(1) and (4) of the Finance Act 1958).
The position in respect of missives is unchanged. Missives of sale of licensed premises and the licensed business carried on therein remain liable to conveyance on sale duty on the consideration attributable to goodwill.
Dispositions executed on or after 23 April 2002
With effect from 23 April 2002, all transfers of goodwill will be exempt from stamp duty. The most common situation that may be encountered involving goodwill is in dispositions of licensed premises where an apportionment of the purchase price is made between the heritable property and goodwill. Only the part allocated to heritage will be liable to ad valorem stamp duty, under the proviso that the apportionment must be just and reasonable. In most cases the deed will have been stamped but in the unlikely scenario of an apportionment in the disposition reducing the element of the purchase price liable to stamp duty below the threshold of £60000, the usual certificate of value will suffice.
In cases of doubt the deed can be referred to the Stamp Office.
50.12 Receipts endorsed on duly stamped writs
A receipt endorsed or otherwise written upon or contained in any instrument liable to stamp duty, and duly stamped, acknowledging the receipt of the consideration money therein expressed, or the receipt of any principal money, interest, or annuity thereby secured or therein mentioned is exempt from stamp duty.
50.13 Purchase of building plots
The Agency has been informed by the Inland Revenue that, where a builder has transacted to sell land and buildings under separate contracts, they are treated as a single transaction for stamp duty purposes. This type of transaction appears to be restricted to Wimpey Homes and associated companies. The Inland Revenue will accept as a basis for stamp duty, the price paid for the plot of ground plus the value of buildings, at the date of execution of the instrument of conveyance. For practical purposes, the date of execution of the instrument means the date upon which it was delivered to the purchaser’s agents, not the date upon which it was signed. This was previously dependant on the state of play at the time of completion of missives.
When an application contains such a deed for registration, it should be accompanied by a Wimpey certificate (or copy certificate) showing the value of the plot and the value of the partially erected buildings as at the date of the execution of the deed. Certificates must be produced and remain with the deed but need not be fiched. The Agency will accept the aggregate amount in the certificate as the basis for stamp duty, read along with the in gremio stamp clause without reference to the Inland Revenue. If exigible stamp duty has not been paid, however, the deed should be dealt with under normal arrangements.
Although this practice came into effect on 10 August 1993, it applies to documents executed (delivered) under agreements which were dated on or after 12 July 1993.
50.14 Statutory exemptions from stamp duty
There are a number of statutes which allow an exemption from stamp duty in specified circumstances. If legal examiners are unsure whether or not an exemption applies, the case should be referred to a senior caseworker for clarification.
The following is a list of Acts detailing further exemptions from stamp duty. Further details can be obtained from the Agency’s legal library.
(a) Church Building Act 1822 (c.72) : section 28
(b) Naval Agency and Distribution Act 1864 (c.24) : section 16
(c) Consecration of Churchyards Act 1867 (c. 133) : section 6
(d) The Finance Act 1946 (c.64) : section 50(c)
(e) National Heritage Act 1980 (c.17) : section 11
(f) Industry Act 1980 (c. 33) : section 2(2)
(g) Finance Act 1981 (c. 35) : section 107
(h) British Telecommunications Act 1981 (c. 38) : section 81
(i) Civil Aviation Act 1982 (c. 16) : section 59(2)
(j) Bankruptcy (Scotland) Act 1985 (c. 66) : section 25
(k) Insolvency Act 1986 (c. 45) : sections 190 and 378
(l) Finance 1987 (c. 16) : section 5(1)
The provisions apply to any instrument executed on or after 1 August 1987.
(m) National Health Service and Community Care Act 1990(c. 19) : section 61(3)
(n) Social Security Administration Act 1992 (c. 5) : section 188
(o) Further and Higher Education (Scotland) Act 1992 (c. 37) : section 58
(p) Museums and Galleries Act 1992 (c. 44) : section 8(2) and (3)
(q) Finance Act 1993 (c. 34) - regarding rent to loan –Scotland – section 203 (1), (2) and (3)
(r) Coal Industry Act 1994 (c. 21) : sections 26, 27 and 28
(s) Health Authorities Act 1995 (c. 17) : schedule 2 section 4(1)
(t) Merchant Shipping Act 1995 (c. 21) : section 221 and schedule 9
(u) Environment Act 1995 (c. 25) : section 119
(v) Atomic Energy Authority 1995 (c. 37) : sections 8, 23, 24 and 25 and schedule 3
(w) Limited Liability Partnerships Act 2000 (c. 12) : section 12
50.15 Refund procedure
Any question of refunding stamp duty due to over-payment is one between the agent and the Inland Revenue only. The Keeper can have no involvement. Any suggestion of re-recording or re-registering an already recorded/registered deed will not be entertained.
If the stamped deed has entered the Books of Council and Session, it will have been transmitted to the Keeper of the Records by the time that any application for refund is made. Once again, the Keeper is not involved.
Although writs held in the Land Register can be released, this should be to the agent to deal with the Inland Revenue direct. Writs should not be released direct to the Inland Revenue by Agency staff.
50.16 Stamp duty on exchanges
Guidance has been issued by the Inland Revenue in respect of excambions where the contracts were entered into on or after 30 Nov 1993. The guidance relates to:
- The circumstances in which equalisation/equality payments may or may not be disregarded for stamp duty purposes;
- The application of the £60,000 stamp duty threshold to exchanges;
- The treatment of sales where one property is sold and another property is given in part payment of the sale price.
50.16.1 Exchanges and equalisation (equality) payments
The 1994 Finance Bill introduced new rules for stamp duty on exchanges of interests in land or buildings. Under the new rules duty is charged upon each transfer. Where the consideration consists of property, its open market value will be taken as the consideration. For example, when a house worth £100,000 is exchanged for another also worth £100,000, stamp duty is charged at 1% on each side of the exchange. The £60,000 threshold is applied separately to each side. Thus if the value of one property is less than £60,000 and the appropriate certificate is endorsed upon the deed, then the instrument would not be liable for stamp duty in relation to the transfer of that property.
50.16.2 Equalisation (equality) payments
Where the market values of the two properties being exchanged are not equal, a payment of money may be given with the lower value property, so as to equalise the bargain. The treatment of such cases for stamp duty purposes will depend upon the facts and the effect of the relevant documents. Generally, where a new house is exchanged for a house worth £80,000, plus equality payment of £20,000, stamp duty liability for the part of the exchange dealing with the new house will be based upon £100,000. In respect of the house with a value of £80,000, where it is clear from the documentation that the old house has been transferred for the new house less the equality money of £20,000, the liability will be based on £80,000.
If there is a multiple exchange, for example, properties A and B are exchanged for property C, the transfer of properties A and B would be regarded as parts of a larger transaction. The £60,000 stamp duty threshold would not apply to either of them if the total consideration for both were more than £60,000. The threshold would apply separately to the transfer of property C.
In some cases when a person offers a property for sale, he may receive the price from the buyer in the form either of money or partly of money and partly of the buyer's existing house. To take a typical example, a builder selling a £100,000 house may receive the price from the buyer in the form of the buyer's old house worth £70,000 plus £30,000 in cash. The cash price may also be called an equalisation payment. Stamp duty is charged on the consideration for the sale. Thus stamp duty liability would be based on £100,000, in respect of the transfer of the new house stamp duty. The transfer of the house to the builder is not regarded as a separate sale for the purposes of stamp duty purposes, and is thus not chargeable to duty ad valorem. It is liable to a fixed stamp of £5. When the exchanged house is subsequently re-sold by the builder any stamp duty will be based on the price paid at that time.
Often when assessing deeds arising from transactions that may be excambions, or may be counter dispositions, the Inland Revenue may examine the missives to decide what they consider the true intention of the parties. Therefore where the Stamp Office has examined an excambion or counter disposition, and stamped the same, it should be unnecessary to enquire further. However, in cases of doubt, the deed can be referred to the Stamp Office as normal.
50.17 Stamp duty on discount sales
Section 107 of the Finance Act 1981 provides that in sales of property at a discount, by any of the organisations listed below, the discount shall not be taken as part of the consideration for stamp duty purposes:
- Any Minister of the Crown
- A local authority or any trust under its control
- Scottish Homes
- A registered housing association
- A police authority
- A housing co-operative
- A fire authority
- A water authority
- The Crown in relation to accommodation provided to a member of the armed forces
The consideration narrated in the deed is taken to be the amount chargeable without any further enquiry required, provided the deed has been executed after 23 March 1981.
50.18 Major Ownership Schemes
Some major ownership schemes provide for the purchaser to buy and obtain title to a portion of a property only (often 80% - the remaining 20% to be acquired at a future date). Dispositions of the remaining portion form part of a larger transaction and, therefore, any Finance Act Certificate must take into account the value of the whole subjects, not merely the portion conveyed.
As it may not be apparent from the conveyances themselves that an inappropriate certificate has been endorsed, all such deeds should be referred to the Controller (Stamps) for further enquiry, unless it is evident that they have already been exhibited to his office. (Further details on ownership schemes can be found in Shared ownership schemes).
50.19 Counter Dispositions
See Stamp duty on exchanges
50.20 Lifetime Annuity Schemes
As described in Lifetime Annuity Schemes, various schemes exist to provide extra income for retired homeowners by providing lifetime annuities financed out of their heritable property. In a typical scheme, a company buys a house at its full current value, the price being paid in the form of a lifetime annuity. The company grants a lease to the former owner for a nominal rent. The disposition granted by the former owner will be liable to ad valorem ‘conveyance’ or ‘transfer on sale duty’ by reference to the total amount of the annuity which will be payable during the period of 12 years after the date of execution (section 56(3) of the Stamp Act 1891). Because the Agency will not have access to the necessary schedules for such commutation, all dispositions should be marked by the Inland Revenue.
50.21 Duplicate Denoting Stamps
Where a deed has been prepared in duplicate, the original deed is stamped with red duty stamps to the value of the duty paid, while the duplicate document is stamped with a red stamp and the legend ‘Duplicate or Counterpart – original fully and properly stamped’ shown in blue ink.
50.22 Destinations in Building Society Reconveyances
When a purchaser has a disposition granted in his or her own favour, the purchaser can take a destination in favour of himself and his wife and survivor and the heirs of the survivor. When the disposition was taken with the purchaser’s consent in favour of a building society this could not be done and the destination could only be inserted in the ultimate reconveyance.
The question of whether such a destination attracted conveyance on sale duty as a gift, was raised with the Inland Revenue. Their reply (dated 23 January 1952), stated that if the disposition narrated that the purchaser and spouse were members of the building society, and the disposition was granted to the building society with the consent of the husband and wife, the insertion in the reconveyance of a destination in favour of husband and wife and the survivor and/or the heirs of the survivor, would not be regarded as attracting voluntary reconveyance duty.
If, however, only one spouse was a member of the building society and the disposition was granted to the building society with his consent only, a reconveyance in favour of the said spouse and the other spouse and the survivor and/or heirs of the survivor would attract voluntary conveyance duty on one half of the value of the property reconveyed. It was not considered that voluntary conveyance duty would be avoided by the insertion in the loan agreement of an obligation on the building society if called on to reconvey to the husband and wife and the survivor. If, however, the loan agreement was executed contemporaneously with the disposition to the building society, and contained a definite undertaking by the building society, that upon due payment of the loan, the subjects would be conveyed to the husband and wife, or to the husband and wife and survivor and/or heirs of the survivor, a reconveyance incorporating a destination to the survivor of husband and wife and the heirs of the survivor would not attract voluntary conveyance duty.
50.23 List of Stamp Duties
By section 14(4) of the Stamp Act 1891 a deed is liable to the payment of the stamp duty in force at the time when it is first executed. The list of stamp duties which follows has been agreed with the Inland Revenue. The list is not intended to be exhaustive. As a general rule, understamped writs on this list will be returned to Agents without submitting them to the Inland Revenue. If any doubt arises, however, owing to a variation from the standard form of any of the writs, they should be referred to the Inland Revenue. This list should not be shown or quoted as an authority to an Agent or member of the public.
50.24 Stamp Duty for various Deeds
By section 14(4) of the Stamp Act 1891, a deed is liable to the payment of the stamp duty in force at the time when it is first executed. The list of stamp duties which follows has been agreed with the Inland Revenue. The list is not intended to be exhaustive. As a general rule, understamped writs on this list will be returned to Agents without submitting them to the Inland Revenue. If any doubt arises, however, owing to a variation from the standard form of any of the writs, they should be referred to the Inland Revenue.
Writ | Stamp and/or Remarks |
| Acknowledgement of omitted conditions | No Stamp |
| Agreement constituting Servitude (where no money passing) | £5. CL where money passing |
| Agreement in respect of payment of improvement grants | No Stamp |
| Agreement, Minute of (containing consent to registration | - No stamp in respect of registration clause if not otherwise liable to stamp duty |
| Assignation of Bond or Standard Security (onerous or in implement of Will) | No Stamp |
| Assignation of Bond or Standard Security (by way of Gift) | Adjud unless certified. |
| Assignation of Ground Annual (for a price) | CL |
| Assignation of Ground Annual (under Will) | £5 unless certified. |
| Assignation of Ground Annual (Gift) | Adjud unless certified. |
| Bond and Assignation or Disposition in security | No Stamp |
| Bond transmitting in Disposition (Bond of Corroboration ) | No Stamp |
| Bond | No Stamp |
| Building Preservation Order | No Stamp |
| Certificate of Consignation on Redemption of Standard Security where Discharge cannot be obtained | No Stamp |
| Certificate of Declarator of Performance of Debtor’s obligations under Standard Security where Discharge cannot be obtained | No Stamp |
| Certificate of surplus or no surplus | No Stamp |
| Charter of Novodamus | No Stamp unless to a purchaser then CL |
| Compulsory Purchase Order | No Stamp |
| Compulsory Notice of Title thereon | CL - but may be recorded before stamping |
| Consolidation, Minute of | No Stamp |
| Contract of Co-Partnery | - Submit to Inland Revenue unless already marked by them |
| Contract of Excambion | |
(1) where money passing not exceeding £100 | £5. Section 73 of Stamp Act 1891 |
(2) where money passing exceeds £100 | CL |
(3) between related persons | Submit to IR unless Certified. |
| Contract of Ground Annual | CL |
| Corrective Disposition | £5 |
| Corrective Disposition (where superseded Disposition is liable to nil’ rate of duty) | No Stamp |
| Declaration of Trust | Submit to IR unless ready marked by them |
| Decree | |
- of adjudication in implement | CL |
- of appointment of Curator bonis | No Stamp |
- of appointment of Factor loco tutoris | No Stamp |
-of appointment of Judicial Factor | No Stamp |
- Appointment of Trustees | No Stamp |
- approving of Disentail | Submit to IR |
- of authority to complete title (guardian or tutor) | No Stamp |
- of authority to complete title under Section 10 of 1874 Act | No Stamp |
- of authority to complete title under Section 10 of 1874 Act (where Will is one of links in title) | No Stamp |
- of foreclosure | CL |
- Intestate Husbands’ Act | No Stamp |
-Ob non solutem canonem | No Stamp |
- of reduction | No Stamp |
- of removal of Trustee | No Stamp |
- of Special Service | No Stamp |
| Deed | |
-of Acknowledgement of omitted conditions | No Stamp |
- of Adoption of Model Deed | No Stamp |
- of Alteration of Conditions | No Stamp |
- of Alteration of feuing Conditions | No Stamp |
-of Assumption | £5 unless certified. |
- of Assumption and Conveyance | No Stamp |
- of Conditions | No Stamp |
- of Consent to feu | No Stamp |
- of Declaration of Trust | Submit to IR unless already marked by them |
-of Postponement | No Stamp |
- of Restriction | No Stamp |
- of Servitude (no money passing) | £5 unless CL where money certified |
| Discharge of | |
- Bond or Standard Security (partial) | No Stamp |
- Bond or Standard Security (final) | No Stamp |
- Bond or Standard Security (split) | No Stamp |
- Bond and Deed of Restriction | No Stamp |
- Bond by Local Authority under Housing Acts | No Stamp |
- Feuduty | No Stamp |
- Feuduty Agreement | No Stamp |
- Ground Annual | No Stamp |
- Heritable Security constituted by ex facie absolute Disposition | No Stamp |
- Loan under Industrial and Provident Society Act 1893 | No Stamp |
- Real burden | No Stamp |
- rights under Trust Deed | No Stamp unless in favour of someone else then submit to IR |
- Servitude | No Stamp |
- (under Matrimonial Homes Act) of rights of liferent legitim etc | No Stamp unless in favour of someone else, then submit to IR |
| Disentail, Instrument of | Submit to IR |
| Disposition | |
- ad rem i.e. by vassal to superior renouncing feu | £5 |
- by heritable creditor | (see under Reconveyance) |
- containing superior’s approval to allocation | £5 or CL. No additional duty for allocation |
- in consideration of relief from feuduty | Submit to Inland Revenue unless already marked by them |
- incorporating Consolidation | £5 or CL. No additional duty for consolidation |
- incorporating Discharge or disburdenment of Bond | £5 or CL. No additional duty for discharge or disburdenment |
- under Lifetime Annuity Scheme | Submit to IR |
- to Local Authorityfor demolition where no price | £5 |
- to Secretary of State for trunk roads | No Stamp |
- under real burden of price unpaid | CL only |
- under Will | £5 unless certified |
- voluntary | Adjud unless certified. |
| Dockets on Certificates of Confirmation | £5 unless certified |
| Duplicate - of an instrument not liable to stamp duty | No Stamp |
| Duplicate - of an instrument liable to stamp duty | £5 |
| Excambion (see Contract of Excambion) | |
| Feu containing | |
Disposition in Security of feuduty | No additional Stamp for disposition |
real burden for road money | No additional stamp for real burden but CL duty if part of consideration |
Renunciation of Lease | No additional stamp for Renunciation |
price paid to A - feuduty to B | Duty on aggregate |
| Feu Writ (granted under a major ownership scheme) | £5 |
| Forestry Dedication Agreement | No Stamp |
| Guarantee | No Stamp |
| General Vesting Declaration | CL if compensation ascertained at date of execution. If compensation not ascertained, £5 for each owner |
| Gift by Crown as Ultimus Haeres to Q & LTR | No Stamp |
| Gift by Crown as Ultimus Haeres to third party | Adjud unless certified. |
| Ground Annual | |
| - Assignation of | CL (for price) |
| - Assignation of (under Will) | £5 unless certified. |
| - Assignation of (Gift) | Adjud unless certified. |
| - Contract of | CL |
| - Discharge | No Stamp |
| Instrument of Disentail | Submit to IR |
| Indemnity | No Stamp |
| Memorandum of Allocation of Feuduty annexed to another Deed | No Stamp |
| Minute of | |
- Agreement (containing consent to registration) | - No stamp in respect of registration clause if not otherwise liable to Stamp Duty |
- Allocation of Feuduty (separate document) with or without | No Stamp |
- consolidation | No Stamp |
- Dissolution of Partnership | - Submit to IR unless already marked by them |
- Extension of period in which document must be recorded (with or without consent to registration) | No Stamp |
- Variation of Lease | - Submit to IR unless already marked by them |
- Waiver | No Stamp |
Notarial Instrument | No Stamp |
| Notice (for Improvement Grants etc) | No Stamp |
| Notice of Allocation of Feuduty (conveyance and Feudal Reform (Scotland) Act, 1970) | No Stamp |
| Notice of Title | No Stamp |
| Notice of Title on compulsory purchase order | CL but may be recorded before stamping, providing the writ is accompanied by a certificate from the acquiring authority to the effect that the compensation payable has not been finally fixed. |
| Order of Lands Tribunal for Scotland allocating feuduty | No Stamp |
| Order of Lands Tribunal for Scotland varying or discharging land obligations | No Stamp |
| Ranking Agreement (with or without consent to registration) | No Stamp |
| Receipt under Industrial & Provident Societies Act | No Stamp |
| Receipt for redemption of feuduty or ground annual (if incorporated in Discharge) | No Stamp |
| Reconveyance to borrower, his heir or beneficiary | No Stamp |
| Reconveyance to person other than borrower his heir or beneficiary | Adjud unless certified. |
| Renunciation of Lease | |
- in consideration of granting a Feu Charter | £5 |
- in any other circumstances | Submit to IR |
- incorporated in Feu and granted in order to obtain new feu | £5 or CL . No additional stamp for renunciation |
Renunciation (under Matrimonial Homes Act) | £5 |
| Resignation as Trustee | No Stamp |
| Revocation of Power of Attorney | No Stamp |
| Separation Agreements (on and after 26.3.85) | £5. Finance Act 1985 |
| Standard Security (Form A or Form B) | No Stamp |
| Standard Security (Variation on granting further loan) | No Stamp |
| submission to Arbitration | No Stamp |
| Tree Preservation Order | No Stamp |
| Trust Deed for behoof of Creditors | £5 |
| Variation of Standard Security on granting further loan | No Stamp |
| Writ of acknowledgment | No Stamp |
| Writ of Clare Constat | No Stamp |
50.25 Stamp Duty Land Tax
Introduction
Part 4 of the Finance Act 2003 (the Act) replaced stamp duty with a new tax on land transactions known as the Stamp Duty Land Tax (SDLT). Part 4 of the Act came into force on 1 December 2003. As of that date SDLT replaced the stamp duty regime on UK land and buildings
SDLT and stamp duty compared
SDLT is very different from stamp duty, both in its scope and nature. The main differences are as follows;
- Stamp duty is a tax on documents whereas SDLT is a tax on transactions involving any estate, interest, right or power in or over land in the UK. Consequently from December 1 2003 (subject to transitional arrangements) deeds no longer require to be stamped, denoted or otherwise contain reference to stamp duty.
- Solicitors no longer submit deeds to HM Revenue and Customs ("the Revenue") for stamping. Instead most land transactions must be notified by the purchaser to the Revenue by means of a Land Transaction return, along with any monies due. The Revenue, in turn, issue the purchaser with a certificate (a 'Revenue certificate') evidencing the fact such a notification has been made. In a limited range of land transactions notification to the Revenue is not required. In those instances a self-certificate must be completed stating the reason why notification is not required.
- Rather than checking to ensure a deed has been properly stamped, denoted or otherwise certified exempt from stamp duty the Keeper must ensure that all applications for registration giving effect to a land transaction are accompanied by one of these certificates. The Keeper is under a statutory obligation to not accept an application for registration of a land transaction unless it is accompanied by an SDLT certificate.
- With stamp duty the Keeper had to ensure that deeds were properly stamped, denoted or otherwise certified exempt. This meant that the Keeper had to have a detailed knowledge of the rates of tax applicable and the bands under which it operated. Under SDLT the Keeper's sole responsibility is to ensure a certificate is presented where that is required. It is the responsibility of the applicant to decide whether a Self Certificate or a Revenue Certificate is appropriate and to notify the Revenue of the correct liability. The Keeper need not reject an application if a Self Certificate is submitted when a Revenue Certificate appears to be appropriate or vice versa. Neither need the Keeper be concerned whether the correct liability for SDLT has been notified to the Revenue.
The Keeper's Role
Section 79(1) of the Act provides that:
"A land transaction to which this section applies or (as the case may be) a document effecting or evidencing a land transaction to which this section applies, shall not be registered, recorded or otherwise reflected in an entry made in Scotland, in any register maintained by the Keeper of the Registers of Scotland other than the Register of Community Interests in Land unless there is produced, together with the relevant application, a certificate as to compliance with the requirements of this Part (of the Act) in relation to the transaction."
Accordingly if a deed submitted for registration, or as a link in title, is in respect of a land transaction to which section 79(1) applies, the Keeper can only accept the application for registration to which the deed relates if it is accompanied by either a Self Certificate or a Revenue certificate. It is emphasised that Intake staff will examine each application to determine whether it should be accompanied by a certificate. If the application requires a certificate and no certificate has been submitted the application will be rejected. Because of the mandatory nature of section 79(1) the Keeper cannot operate a standover facility in respect of the requirement to produce SDLT certificates.
What is a Land Transaction?
The requirement to examine a certificate arises only in respect of land transactions. A land transaction is defined in Section 43 of the Act as the 'acquisition of a chargeable interest.' A chargeable interest is defined in Section 48 of the Act as:
'(a) an estate interest right or power in or over land in the United Kingdom or
(b) the benefit of an obligation, restriction or condition affecting the value of any estate, interest, right or power over land in the United Kingdom other than an exempt interest.'
This is intentionally a very wide definition which will bring most transactions relating to land within the scope of SDLT.
Exempt interests are any security interest or a license to use or occupy land. A security interest is an interest held to secure the payment of money or performance of an obligation. This includes a standard security or any deed relating thereto (e.g. a discharge, variation, deed of restriction etc). See no certificate is required for the following deeds/applications for a full list of exempt transactions, together with other deeds that are not land transactions, and do not require an SDLT certificate.
Other than security interests, a licence to use or occupy land and a Variation of Lease all other land transactions come within the scope of chargeable interests and as such a certificate will have to accompany any application for registration relating to them. This is the case even where the particular transaction is subject to a relief from SDLT. For instance, transactions relating to land lying in a disadvantaged area will require to be notified to the Inland Revenue and a Revenue certificate will have to be obtained notwithstanding that there is no actual liability for SDLT. See revenue certificate required for the following deeds for a list of all land transactions and associated deed types.
The certification regime
What is a certificate?
A certificate is simply a form of evidence that must be presented to the Keeper at the time the application for registration is submitted. The section "what is a land transaction" sets out the general circumstances in which the applicant must submit a certificate. Section 79(3) provides for two types of certificate, namely a Revenue certificate and a self-certificate.
Section 79(3) reads as follows:
'The certificate must be either -
(a) a certificate by the Inland Revenue (a 'Revenue certificate') that a land transaction return has been delivered in respect of the transaction, or
(b) a certificate by the purchaser (a 'self certificate') that no land transaction return is required in respect of the transaction.'
The self-certificate has a prescribed statutory format which must be followed in all cases. The Revenue certificate does not have a prescribed format. Rather the Stamp Duty Land Tax (Administration) Regulations 2003 provide for the information which it must contain. This information can be in a format of the Inland Revenue's choosing. From 1 November 2006 an electronic version of the Revenue certificate will be made available for applicants who submit their returns online.
Revenue certificate
The majority of land transactions, including all transactions where a payment of SDLT is required, must be notified to the Inland Revenue. The notification can be made either on paper or online. Online notifications can be made using the Revenue’s e-filing system. Solicitors can interact direct with the e-filing system or indirectly through an interface provided by what is known as a Third Party Vendor (TPV). A TPV is simply a software provider who provides a solicitor with a case-management system that is linked to the Revenue’s e-filing system. The requirement to notify extends to many transactions, which under the stamp duty regime, would not require a deed to be sent to the Stamp Office. For instance most acquisitions of land for money or money's worth require notification even if the consideration is chargeable at the nil rate. There is one exception to this general rule namely residential property with a consideration, including the consideration for any linked transaction, of less than £1000 does not require to be notified to the Inland Revenue. A self certificate will therefore suffice. If the property is commercial this exception does not apply.
Following notification the Revenue will issue to the purchaser or his/her agent a Revenue certificate which is known as Form SDLT5. From 1 November 2006, if an application is made online either through the Revenue or through a TPV, an electronic version of the SDLT 5 is issued by return. See revenue certificate required for the following deeds for details of the deed/transaction types for which the Keeper requires to examine a Revenue certificate.
The SDLT5 or Revenue Certificate (whether paper or e-Certificate) will contain the name of the purchaser, the name of the vendor, a description of the transaction, the property address (including title number if there is one) and details of the solicitor acting for the purchaser. The certificate will also contain a declaration from the Inland Revenue explaining that the certificate is issued under section 79 of the Finance Act and evidences that a Land Transaction Return has been delivered in respect of the transaction.
Self Certificate
Some land transactions where no SDLT is payable do not have to be notified to the Revenue. For such transactions the purchaser or a personal representative can complete a self-certificate. An agent cannot sign the Certificate unless he has been appointed personal representative. The self-certificate must follow the statutory style as set out in the Stamp Duty Land Tax (Administration) (Amendment) Regulations 2006. This Certificate is issued by the Revenue. The previous version of the SDLT 60 as set out in the Stamp Duty Land Tax (Administration) Regulations 2003 issued by the Inland Revenue will continue to be valid and acceptable if received by 16 April 2007.
Section 77 and Schedule 3 (as amended by Section 298 of the Finance Act 2004) provide that the following transactions do not require to be notified and therefore a self-certificate is appropriate in the following limited circumstances:
• transfer of ownership of land for no chargeable consideration;
• transfer of ownership of land comprising entirely residential property where the chargeable consideration together with the consideration for any linked transaction is less than £1000
• transfer in connection with divorce or dissolution of a civil partnership;
• transfer in connection with the variation of a Will.
• Transfer to a beneficiary of his entitlement under a Will or on intestacy including a transfer where the beneficiary assumes responsibility for a secured debt. If there is a consideration paid by the beneficiary the transaction requires to be notified to the Revenue – unless the property is wholly residential and the consideration is less than £1000.
• assignation of a lease for no chargeable consideration
• land transaction (other than a transfer of ownership of land or grant or assignment of a lease) where the chargeable consideration is not such as to attract a charge to SDLT (e.g. Servitude, Minute of Waiver, Renunciation of Liferent, Minute of Agreement for a consideration not exceeding the zero rate threshold
• Transfer of interest in a partnership for chargeable consideration not exceeding the zero rate threshold.
See "self certificate required for the following deeds" for a list of the specific deed types for which a self-certificate is appropriate.
Examination of certificates
Land Register Intake staff will examine all applications for registration to determine whether a certificate is required. They will ensure that the Certificate produced meets the statutory requirements in the Finance Act 2003 and subsidiary legislation.
The examination of the Revenue Certificate will ensure (1) it relates to the application which it accompanies and (2) that it is the original certificate produced by the Revenue.
The Self Certificate will be examined by Intake Staff to ensure that it is in the Statutory format and that it has been completed and executed correctly.
If a Certificate is required and it is not submitted, the application will be rejected. If it appears that a Self Certificate has been submitted where a Revenue Certificate is appropriate or a Revenue Certificate where a Self Certificate is appropriate then the application should not be rejected unless examination of the Certificate discloses that it does not meet the statutory requirements.
Failure in these regards will result in the potential application for registration being rejected and returned to the ingiving agent.
Registration Officer responsibilities
Registration Officers should not replicate the checks carried out by Intake. Intake staff examine all certificates submitted and will ensure that each certificate is acceptable. Registration Officers should ensure the certificate is numbered on the Inventory Form 4. However, they should not instruct Archive to archive a copy of the certificate. For the avoidance of doubt if an application gets passed intake without a Certificate or with an incorrect Certificate Registration Officers should not requisition a SDLT Certificate.
For the avoidance of doubt neither the Revenue certificate nor the self-certificate will themselves be entered or reflected in any entry in Title Sheet.
The certificate should be returned to the applicant's agent along with the other deeds and documents accompanying the application for registration.
Transitional arrangements
Schedule 19 specifies the circumstances in which deeds remain subject to stamp duty on or after 1 December 2003. The general rule is that a transaction will not be a land transaction unless the effective date of the transaction is on or after the 1st of December 2003. The effective date will generally be the date of completion of the contract.
Section 121 of the Act provides that completion in Scotland means, in the case of a lease, when it is signed by the parties or constituted by any other means, or in relation to any other transaction the settlement of that transaction. If the effective date of the transaction is before 1 December 2003 then the deed will not be a SDLT transaction and will require to be stamped. Conversely where the effective date of the transaction is on or after the 1st of December the deed must be accompanied by a Revenue certificate or self-certificate.
Where after the 1st of December the Keeper receives a deed that has been duly stamped, or denoted by the Inland Revenue the deed can be accepted without any further enquiry.
Where after the 1st of December the Keeper receives a deed containing a Finance Act or exempt instrument clause Agents have been advised to submit a covering note explaining why the application should still be subject to stamp duty.
Partnership Transactions
All partnership transactions which involve the transfer of land into or out of a partnership whether by a third party or an existing past or future partner come within the scope of SDLT and subject to the same requirements as other Land Transactions. i.e. where it is for a chargeable consideration a Revenue Certificate will be required. Where there is a transfer an interest in a partnership between partners and the chargeable consideration does not exceed the zero rate threshold then a SDLT 60 is appropriate. There may be circumstances where the interest transferred between partners includes land and an SDLT 60 is produced. The SDLT provisions for partnership transactions are complex but the Applicants have the responsibility for ensuring that the Certificate submitted is appropriate. The Keeper can accept either certificate subject to the certificate meeting the required criteria.
Land transactions involving multiple properties
Where a number of properties are transferred as part of one transaction the purchaser need only make one Land Transaction return to the Revenue. Similarly if properties are transferred as part of a series of transactions or a single scheme they are described in Section 108 of the Act as linked transactions. This does not mean that the purchaser will only receive one Revenue certificate. Rather they have the choice to obtain one certificate for each individual property.
The Keeper's guidance to the profession is that where a number of properties are conveyed in one deed then only one certificate with a schedule appended listing the properties is required. If the properties are each to receive a separate title sheet, intake staff will photocopy the certificate along with the deed. Conversely if a number of properties are being conveyed, each in a separate deed, a separate Revenue Certificate should be obtained for each deed.
Stamp Duty Land Tax and Title Conditions (Scotland) Act 2003
From 28 November 2004, as a result of the new regime for the constitution, discharge and variation of real burdens, new deeds can now be registered in either of the Property Registers. The Act makes provision for burdens to be constituted in any type of deed. A Disposition which also constitutes real burdens and a Deed of Servitude will require to be registered against both the benefited property and burdened property. In general terms the SDLT requirements have not altered but the Revenue have clarified their requirements for the new types of deeds and deeds which now require dual registration.
(a)Notices under Title Conditions (Scotland) Act
The new deeds are: Notices of Termination under section 20, Notices of Preservation under section 50, and Notices of Converted Servitude under section 80. The Inland Revenue have confirmed that these deeds require neither an Inland Revenue Certificate nor a self certificate.
(b)Transfers where consideration is between £40K and £125K
Question: What is the appropriate Certificate where the purchase price in a Disposition is between £40,000 and £125,000 for residential property and less than £150,000 for commercial property?
Answer: Although no SDLT may be payable i.e. the consideration does not exceed the zero rate threshold, the transaction is one in which a chargeable interest is acquired for a chargeable consideration. Therefore a Land Transaction Return (SDLT 1 to 4 as appropriate) should be submitted to the Inland Revenue and a Revenue Certificate obtained. The Certificate should be submitted with the application for registration.
(c)Transfers where the consideration is under £40K
Question: What is the appropriate Certificate where the purchase price of the property is below £40,000?
Answer: Prior to 12 March 2008 Section 298(2)(b) of the Finance Act 2004 provided that subjects which consist of property which is entirely residential and the chargeable consideration, together with that of any linked transactions, is less than £1000 (i.e. £999.99 or less), is not a notifiable transaction and a self certificate was therefore appropriate.
With effect from 12 March 2008 transactions where the chargeable consideration is less than £40,000 no longer required to be notified to the Revenue. Further changes mean that it will no longer be necessary for purchasers to complete a SDLT60 (self-certificate) if the transaction is in respect of a consideration below that new notifiable threshold.
NB If the subjects are other than residential property then a Revenue Certificate should be obtained.
(d) Deed of Servitude
A deed of Servitude requires either a Self Certificate (if the consideration does not exceed the zero rate) or a Revenue Certificate (if the consideration does exceed the zero rate).
(e) Minutes of Waiver, Discharge or Variation of Real Burdens or Conditions or Discharge of Servitude
Any form of waiver, discharge or variation of real burdens including those under section 33 and section 35 of the Act or a discharge of a servitude requires a Self Certificate if the consideration does not exceed the zero rate threshold. An Inland Revenue certificate is required if the consideration exceeds the zero rate threshold.
Frequently Asked Questions
A Erroneous reference to Finance Act certificate or Exempt Instrument Regulations certificate
Question: What will the Keeper do if presented with a deed, accompanied by the appropriate certificate, that erroneously includes a Finance Act clause or reference to the Exempt instrument Regulations?
Answer: The Keeper will not refuse to accept a deed for recording or registration containing such a clause or reference provided the deed is accompanied by the appropriate certificate in terms of the Finance Act 2003. The reference in the deed to the Finance Act or Exempt Instrument Regulations will be treated as pro non scripto.
B Transfers where consideration is between £1K and £60K
Question: What is the appropriate Certificate where the purchase price in a Disposition is between £1000 and £125,000 for residential property and less than £150,000 for commercial property?
Answer: Although no SDLT may be payable i.e. the consideration does not exceed the zero rate threshold, the transaction is one in which a chargeable interest is acquired for a chargeable consideration. Therefore a Land Transaction Return (SDLT 1 to 4 as appropriate) should be submitted to the Inland Revenue and a Revenue Certificate obtained. The Certificate should be submitted with the application for registration.
C Transfers where the consideration is under £1K
Question: What is the appropriate Certificate where the purchase price of the property is below £1000
Answer: Section 298(2)(b) of the Finance Act 2004 provides that subjects which consist of property which is entirely residential and the chargeable consideration, together with that of any linked transactions, is less than £1000 (i.e. £999.99 or less), is not a notifiable transaction. A self certificate is therefore appropriate. The Inland Revenue have now revised the SDLT 60 to include this category, but the previous version of the SDLT 60 continues to be valid if delivered before 16 April 2007.
NB If the subjects are other than residential property then a Revenue Certificate should be obtained.
D Transfers where no consideration passes
Question: What Certificate is required when a Disposition is for no consideration?
Answer: A conveyance for no chargeable consideration requires a Self-Certificate. It is not a notifiable transaction in terms of Section 77(3) of the Act.
E Transfers for certain good and onerous causes
Question: What is the appropriate certificate in relation to a disposition which narrates the consideration as "good and onerous causes"?
Answer: If the disposition is granted for money or money's worth, e.g. a transfer subject to an existing debt, then it is a notifiable transaction and a Land Transaction Return (SDLT 1) should be submitted to the Inland Revenue and a Revenue Certificate obtained and submitted with the application.
F Deeds of Excambion
Question: What is the appropriate Certificate for a Deed of Excambion?
Answer: Deeds of Excambion where the property is entirely residential and the consideration or value for both properties is less than £1000 will require two Self Certificates. If the value is greater than £1000 then the transaction is notifiable and two revenue certificates are required. Similarly, where part or all of the property is commercial two Revenue Certificates are required.
G Notice of Title and links in title
Question: What certificate is appropriate in connection with a Notice of Title or where an application is made to update the proprietorship section other than following upon a sale?
Answer: A certificate will be required for a Notice of Title. Similarly, where links in title are being submitted in order that the title sheet may be updated in reliance thereon, a certificate of compliance will also be required. Normally, Notices of Title are submitted only to the Register of Sasines, although they may occasionally be encountered in the Land Register, for example where title is being completed following upon a compulsory purchase order. This is an exception to the general rule in section 3(6) of the 1979 Act.
In recording notices of title in the Register of Sasines, the type of certificate which should accompany it will depend on whether the links in title specified in the Notice of Title were land transactions that required notification to the Revenue. Occasionally a Notice of Title will be submitted to the Land Register following on a Compulsory Purchase Order. If there is valuable (and thus chargeable) consideration in respect of the compulsory purchase in the form of compensation, the Keeper would expect a Revenue certificate to accompany the Notice of Title. If there is no valuable consideration a Self-certificate would be appropriate. It is for the purchaser to determine which certificate is appropriate. The Keeper will accept either type of certificate without further enquiry.
It is not uncommon for links in title to be submitted for registration in the Land Register as a dealing, for example where the link in title is a docquet transfer. Where the link is being submitted in order that the title sheet may be updated in reliance thereon the Keeper will require a certificate of compliance in respect of the link in title. The type of certificate will depend on whether any consideration is passing. In most cases no consideration will be passing. For instance if the transferee named in a docquet should complete title, a self-certificate will be required. The same is true for a Trustee in Sequestration taking title under an Act and Warrant. Unless it is clear from the face of the links in title that consideration is passing, the Keeper will accept a Self-certificate without further enquiry. If it is clear that there is an element of consideration passing the appropriate certificate is a Revenue certificate.
Note: Where the links in title are being submitted in support of an actual conveyance no certificate is required in respect of the links in title. Rather a certificate will however be required in respect of the actual conveyance. For example, if the beneficiary/beneficiaries do not seek to update the title sheet but utilise the docquet purely as a link in title (along with the confirmation of executors) in conveying the property, the Keeper will expect a Revenue Certificate for the sale transaction when it is registered, and will not require any certificate for the link in title.
H Transfers to a beneficiary under a Will or on intestacy
Question: What SDLT certificate is required when property passes to a beneficiary.
Answer: The acquisition of property by a person in or towards satisfaction of his entitlement under a will or on intestacy is an exempt transfer in terms of Schedule 3 of the Act and requires a Self Certificate. The transaction remains exempt even where the beneficiary takes on a debt secured on the property. A transaction following on the variation of a Will within two years of the death of the testator is also exempt.
If any consideration is paid for the acquisition a Return should be submitted to the Inland Revenue and a Revenue Certificate obtained. If the property is entirely residential and the consideration is less than £1000 the Keeper will accept a Self-certificate.
I Application to give effect to survivorship destination
Question: What SDLT evidence does the Keeper require in connection with an application to give effect to a survivorship destination?
Answer: Where an application is made to update the Proprietorship Section of the Title Sheet, to note the death of the proprietor or to give effect to the operation of a survivorship destination, the Keeper will not require sight of either a Revenue certificate or a Self-certificate.
J Deed of Conditions
Question: Is a certificate required in connection with a Deed of Conditions?
Answer: The Inland Revenue has advised that neither a Revenue certificate nor a Self-certificate is required in respect of a Deed of Conditions.
K Transfers to Government Departments
Question: Is a certificate required in connection with a conveyance in favour of a Government body?
Answer: Although section 107 of the Finance Act 2003 provides for certain Government bodies to be exempt from charge, the exemption is a relief that has to be claimed on an SDLT1. It cannot be self-certified. Code 18 in box 9 of SDLT1 claims the relief. As such the Keeper will expect to see a Revenue certificate.
L Sub-sales
Question: What certificates require to be submitted in connection with a sub-sale?
Answer: The provisions governing notification and certification of sub-sales are contained in section 45(3) of the Finance Act 2003. That section provides that 'the substantial performance or completion of the original contract at the same time as, and in connection with, the substantial performance or completion of the secondary contract arising from a subsequent transfer of rights shall be disregarded.' What this means in practice is that only one certificate is required, namely a certificate in respect of the transfer by the sub-seller to the party applying for registration or recording. The following examples illustrate the operation of section 45(3);
Example 1: A concludes missives to sell to B for £100,000. Before B takes title he concludes missives to sell to C for £150,000, with the Disposition going direct from A to C with the consent of B. In terms of section 45(3) the purchase by B from A is not treated as a land transaction. Only the purchase by C is. When the Disposition by A to C with consent of B is presented for registration all the Keeper will require is a Revenue Certificate in respect of the purchase by C. No Revenue certificate will be required in connection with B since the purchase by B is not a land transaction.
Example 2: A concludes a contract for the sale of a house to B. B subsequently enters into a contract with C for sale of the same property. The date of entry in both contracts is the same. On the date of entry A grants a conveyance to B in exchange for payment of the purchase price and B grants a conveyance to C in respect of the purchase price. Only C takes possession of the property. Both dispositions will be submitted to the Keeper at the same time. Section 45(3) will apply and the Keeper will only require to see a Revenue certificate in connection with the Disposition conveying the property from B to C.
In order that the Keeper is aware that sub-sale relief applies to a deed or deed being presented for registration solicitors are advised to append a covering letter to the Disposition narrating that section 45(3) applies. Solicitors have been further advised that it would also be of assistance if it were noted on the front page of the accompanying application form that the transaction is in respect of a sub-sale.
M Disadvantaged area relief and other relief
Question: Where a relief applies to the transaction what certificate is required for the purposes of registration?
Answer: Relief has to be claimed on the appropriate Land Transaction Return. As such the Keeper will expect to see a Revenue certificate.
N Completion of Self-certificate
Question: Who should sign the Self-certificate?
Answer: The Self-certificate must be signed by the purchaser. Where there is more than one purchaser they all must sign. Signature by an agent such as a solicitor is not acceptable except under special circumstances, for instance where the solicitor has been appointed as Attorney under a Power of Attorney
Question: Does the Keeper require the latest version of SDLT 60 to be submitted.
Answer: HMRC have issued a new version of the SDLT 60 and also issued revised Guidance Notes (SDLT 68). This form can be used from 17 April 2006. The previous version continues to be valid if used before 16 April 2007.
O Photocopy certificates
Question: Is it acceptable to submit a photocopy of a Revenue certificate or a Self-certificate?
Answer: No. The original certificate must be submitted. Note: It is permissible for a solicitor to photocopy blank Self-certificates for subsequent completion by his or her client. The Self-certificate submitted to the Keeper must however be the actual Self-certificate signed by the purchaser.
P Assignation of Leases
Question: What Certificate is required for an Assignation of Lease
Answer: An Assignation of lease for any consideration now requires to be notified to the Inland Revenue and therefore requires to be accompanied by a Revenue Certificate. The Inland Revenue advise that rent payable by the new tenant does not count as consideration. If no consideration is payable for the Assignation it can be self certified.
NB: Where an Assignation contains a reverse premium no Certificate is required.
Q Partnership deeds
Question: What is the Inland Revenue's requirement where an interest in a Partnership is transferred.
Answer: There are special requirements for the transfer of property and the transfer of an interest in a partnership. However as a general rule the transfer of property into or out of a partnership is subject to SDLT and the Keeper will expect any such application to be accompanied by a Revenue Certificate. Where an interest in a partnership is transferred between partners (which may include the transfer of land) there are special provisions and an SDLT 60 certificate may be appropriate. The full requirements are contained in Schedule 15 Finance Act 2003 as amended.
R Register of Community Interests in Land
Question: Do applications to Register of Community Interests in land require to comply with the requirements of Section 79 of Finance Act 2003.
Answer: In terms of Section 298(3) of the Finance Act 2004 the Register of Community Interests in Land the Keeper does not require to examine either a Revenue or Self Certificate in respect of applications to the Register of Community Interests in Land. No certificate need been produced with applications to this Register.
S Deeds constituting Real Burdens under the Title Conditions (Scotland) Act 2003
Question: What certificate is required for a constitutive deed in terms of the Title Conditions (Scotland) Act 2003?
Answer: This will depend upon the type of deed you are using. If your constitutive deed is a disposition (whether it is a conveyance of the benefited property or the burdened property) then the appropriate certificate should be submitted depending upon the consideration passing: only if there is no consideration or consideration is less than £1000 and the property conveyed is wholly residential, is a self-certificate appropriate. Otherwise, an Inland Revenue certificate should be submitted. No separate certification is required in respect of the constitution of the real burdens.
Where the constitutive deed is a deed of conditions or deed of constitution of real burdens, or an agreement declaring burdens affecting one property in favour of another property, then the Keeper does not require the submission of either an Inland Revenue certificate or a self-certificate.
T. Notices under Title Conditions (Scotland) Act 2003
Question: What certificate is required for a section 50 Notice of Preservation under the Title Conditions (Scotland) Act 2003 or a section 80 Notice of Converted Servitude under that Act?
Answer: Neither an Inland Revenue certificate nor a self-certificate requires to be submitted with the applications for registration and/or recording of a Notice of Preservation or a Notice of Converted Servitude.
Question: What certificate is required for a section 20 Notice of Termination under the Title Conditions (Scotland) Act 2003?
Answer: Neither an Inland Revenue certificate nor a self-certificate requires to be submitted with the applications for registration or recording of a Notice of Termination.
U. Minutes of waiver, discharges and variations of real burdens
Question: What certificate is required for a waiver or discharge of real burdens or discharge of a servitude?
Answer: If consideration does not exceed the zero rate threshold a self-certificate executed for or on behalf of the proprietor or proprietors of the subjects affected by the real burdens being waived or discharged, or servitude being discharged, will be appropriate. If there is consideration and this exceeds the zero rate threshold an Inland Revenue certificate should be submitted.
V. Deeds of Servitude
Question: What certificate is required for a Deed of Servitude?
Answer: Where the consideration does not exceed the zero rate threshold a self certificate executed for or on behalf of the proprietor of the benefited property should be submitted with the application for registration. If the consideration exceeds the zero rate threshold then a certificate from the Inland Revenue is appropriate.
W. SDLT requirements when more than two granters or grantees in deed
Question Will the Keeper accept a Revenue Certificate showing only two vendors or purchasers when there are more than two granters or grantees in the accompanying disposition?
Answer The Revenue Certificate is designed to show up to two vendors or purchasers and therefore the Keeper accepts that in such cases not all vendors and purchasers will be disclosed on the accompanying SDLT Certificate. The Revenue have advised that, when submitting a Return an SDLT2 supplementary return should accompany an SDLT1 when there are three or more vendors or purchasers.
X. SDLT Requirements for Compulsory Purchase Orders and General Vesting Declaration
Question Does the Keeper require a Revenue Certificate with a Compulsory Purchase Order (CPO) and General Vesting Declaration (GVD)
Answer Where a CPO and GVD are presented together or when a GVD is presented on its own, the Keeper will require one Revenue Certificate. If a Compulsory Purchase Order is presented for registration and not accompanied by a GVD no Certificate is required.
Y. Electronic Certificates
Question: Will the Keeper accept an Electronic Submission Receipt/Electronic SDLT5
Answer: From 1 November 2006 HMRC will produce an Electronic Receipt or Electronic equivalent of the SDLT5 for all applications successfully submitted online. This can be printed off and can be submitted to the Keeper with an application for Registration. Third Party Vendors are also producing versions of an electronic SDLT5 certificate. These certificates must pass an HMRC recognition process before they can be accepted by the Keeper. The Third Party Vendors recognised by HMRC and examples of their products can be found on Her Majesty's Revenue and Customs web-site. These certificates will also be accepted by the Keeper from 1 November.
Question: If an Electronic Certificate is submitted with an application for Registration does the Keeper require to see the paper version once it is received from HMRC
Answer: HMRC will continue to issue paper SDLT 5 Certificates to every applicant for whom a Return is made, be it on paper or on-line. However the Keeper does not require to see these if an electronic certificate has been accepted with the application for Registration. The paper copy should be retained by the applicant or his agent.
Z. Land Transactions involving multiple properties
Question: When making application to register land transactions involving multiple properties should more than one Certificate be obtained?
Answer: Where a number of properties are transferred as part of the one transaction the purchaser need only make one Land Transaction return to the Revenue. Similarly if properties are transferred as part of a series of transactions or a single scheme they are described in Section 108 of the Act as linked transactions. This does not mean that the purchaser will only receive one Revenue certificate. Rather they have the choice to obtain one certificate for each individual property.
The Keeper's guidance to the profession is that where a number of properties are conveyed in one deed then only one certificate with a schedule appended listing the properties is required. If the properties are each to receive a separate title sheet, intake staff will photocopy the certificate along with the deed. Conversely if a number of properties are being conveyed, each in a separate deed, a separate Revenue Certificate should be obtained for each deed.
Question: Is it acceptable to submit a certified copy of a Certificate and Schedule when there is a land transaction involving multiple properties some of which are situated in Scotland and some outwith Scotland?
Answer: A certified copy Certificate and Schedule is not acceptable. When dealing with Land Transactions involving properties in Scotland and England, a separate Return and Schedule should be requested for the Scottish properties. The Revenue will supply a separate Return if requested to do so.
Question: Is it acceptable to submit an Electronic Revenue Certificate or SDLT 5 for registration of land transactions involving multiple properties?
Answer: It is acceptable to submit Electronic SDLT 5 certificates for registration of land transactions involving multiple properties provided that where one certificate is being submitted for a number of properties there is attached either (a) a schedule listing the properties for which registration is sought or (b) in the case of an electronic SDLT5 issued by HMRC it is accompanied by copies of the Return submitted to HMRC listing the properties for which registration is sought.
NO CERTIFICATE IS REQUIRED FOR THE FOLLOWING DEEDS/APPLICATIONS
1. Standard Security
2. Standard Security over Standard Security
3. Variation of Standard Security
4. Restriction of Standard Security
5. Partial Discharge of Standard Security
6. Deed of Disburdenment of Standard Security
7. Discharge of Standard Security
8. Section 40 Discharge of ex facie absolute conveyance
9. Deed of Conditions
10. Notice of Payment of Repairs Grant
11. Notice of Payment of Improvement Grant
12. Notice of Cessor
13. Charging Orders
14. Floating Charge
15. Ranking Agreement
16. Assignation of Creditors interest in a Standard Security
17. Affidavit, Consent, and Renunciation of occupancy rights in terms of Matrimonial Homes (Scotland) Act 1981
18. Application to note confirmation of executor in Land Register
19. Application to give effect to Survivorship Destination in Land Register
20. Application to note death of proprietor in Proprietorship Section
21. Application for rectification of the Land Register - Section 9 Land Registration (Scotland) Act 1979
22. Decree of Reduction
23. Section 19 Agreement in terms of Land Registration (Scotland) Act 1979
24. Power of Attorney
25. Intervention Order (Adults with Incapacity (Scotland) Act 2000)
26. Appointment of Judicial Factor
27. Building Preservation Order
28. Schedule of Listed Buildings
29. Tree Preservation Order
30. Section 50 or Section 75 Town and Country Planning (Scotland) Act 1997
31 Compulsory Purchase Order (not accompanied by GVD)
32. Lands Tribunal Order
33. The following Orders/Agreements in terms of the Land Reform (Scotland) Act 2003 Public Path Creation Order and Core Path Order or Core Path Agreement.
34. All Notices and Orders in terms of the Abolition of Feudal Tenure etc (Scotland) Act 2000 and Title Conditions (Scotland) Act 2003 with the exception of Section 19 Agreement in terms of the Abolition of Feudal Tenure etc (Scotland) Act 2000 which requires a Self Certificate.
35 Minute of Variation of conditions of Lease
36Assignation of a lease containing a reverse premium
37 S50 Notice of Preservation under Title Conditions (Scotland) Act 2003
38 S80 Notice of Converted Servitude under Title Conditions (Scotland) Act 2003
39 S20 Notice of Termination under Title Conditions (Scotland) Act 2003
40. Transactions were the consideration is less than £40,000.
REVENUE CERTIFICATE REQUIRED FOR THE FOLLOWING DEEDS
1. Disposition (for money or money's worth- chargeable consideration)
2. Disposition and Assignation
3. Deed of Gift QLTR to third party
NOTE:
In the following circumstances a Self Certificate is appropriate for the above deeds:
(a) Where the deed is granted for no consideration,
(b) Where a conveyance is granted in connection with Divorce,
(c) Where the deed conveys property to a beneficiary in implement of rights under a Will or on intestacy (even if the beneficiary assumes responsibility for any debt secured on the property) or there is a variation of the Will within 2 years.
NB If there is any consideration paid by the beneficiary the appropriate-certificate is a Revenue certificate unless the consideration is under £1000 and the property is residential (see point (4)).
(d) Where the consideration (together with consideration in any linked transaction) paid is less than £1000 (i.e. £999.99) and the property is entirely residential.
(e) Where the subjects comprise solely a superiority interest and the consideration does not exceed the zero rate threshold.
4. Lease (including lease of salmon fishings and minerals)
5. Assignation of long lease
Note: If there is no consideration in the Assignation a Self-certificate is appropriate.
Note: If the Assignation contains a reverse premium no Certificate is required. The transaction falls outwith the scope of SDLT.
6. Missives of let which are registrable
7. Sub-lease/ Missives of sub let which are registrable
8 General Vesting Declaration (with or without a CPO)
9. Statutory Conveyance
10. Excambion (NB this deed will have two Revenue Certificates - one for each property. Where the subjects are entirely residential and the consideration or value of both properties is less than £1000 then two Self Certificates are required)
It is the applicant's responsibility to ensure that the correct Certificate is submitted. The application should not be rejected if it is accompanied by the a Self Certificate when a Revenue Certificate is appropriate or vice versa unless the Certificate produced does not meet the required criteria.
SELF-CERTIFICATE REQUIRED FOR THE FOLLOWING DEEDS
1. Deed of Servitude
2. Discharge of Servitude
3. Minute of Agreement constituting servitude
4. Wayleave Agreements
5. Minute of Waiver
6. Right of Pre-emption contained in separate deed
7. Renunciation of Pre-emption
8. Grant of Liferent
9. Renunciation of Liferent
10. Section 19 Agreement in terms of the Abolition of Feudal Tenure etc (Scotland) Act 2000
11. Notice of Title
12. Discharge or variation of real burdens
13. Renunciation of Lease
Note: If any of the above deeds are granted for a consideration greater than zero rate threshold then a Revenue Certificate is the appropriate Certificate.
14. Conveyance or Excambion of property which is entirely residential for a consideration or value (including the consideration or value of any linked transactions) of less than £1000
15. Conveyance (disposition) for no consideration.
16. Assignation of a lease for no consideration
17. Transfer of interest in a partnership for chargeable consideration not exceeding the zero rate threshold.
It is the applicant's responsibility to ensure that the correct Certificate is submitted. The application therefore should not be rejected if it is accompanied by a Revenue Certificate unless the Certificate produced does not meet the required criteria.
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This is the registration manual for 1979 casework.
Do not under any circumstances use the information here when settling 2012 casework. This resource has been archived and is no longer being updated. As such, it contains many broken links. Much of the information contained here is obsolete or superseded.
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The Manual is an internal document intended for RoS staff only. The information in the Manual does not constitute legal or professional advice and RoS cannot accept any liability for actions arising from its use.
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