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.