S18 Stamp Duty Land Tax

Section 43 of the Land and Buildings Transaction Tax (Scotland) Act 2013 (LBTT) of the Act came into force on 1 April 2015, however the tax legislation that applies is dependent on the effective date of the land transaction.

Where the effective date of the land transaction is on or after 1 April 2015, the requirements of LBTT under section 43 of the Land and Buildings Transaction Tax (Scotland) Act 2013 will apply.

However, where the effective date of the land transaction is prior to 1 April 2015 the requirements of Stamp Duty Land Tax (SDLT) under section 79 of the Finance Act 2003 will apply. This requires that a recordable deed evidencing a land transaction which must be notified to Her Majesty's Revenue and Customs (HMRC) must not be registered in any register maintained by the Keeper of the Registers of Scotland, unless it is accompanied by an Stamp Duty Land Tax (SDLT) certificate.

SDLT is a tax which is sometimes payable on a limited range of transactions with the ownership of land or certain rights in land. These transactions must be notified to HMRC, who issue a certificate confirming that the transaction has been notified. The certificate issued will be an SDLT 5 Certificate or a Submission Receipt and Electronic SDLT 5.

As the "Effective date" usually means the date of completion of a transaction, the numbers of applications requiring SDLT evidence will diminish.

Examples

Unusual cases - where it may be unclear if SDLT evidence is required

A renunciation of lease where a premium is paid of £40,000 or more from landlord to tenant (not tenant to landlord)
A deed relating to residential land, either creating a servitude right, a pre-emption or a liferent or a deed discharging,waiving or varying such a right or encumbrance where there is a consideration of £125,000 or more
A deed relating to non-residential or mixed use land, either creating a servitude right, a pre-emption or a liferent or a deed discharging, waiving or varying such a right or encumbrance where there is a consideration of £150,000 or more

Table of Contents

Sasines Manual

S18 Stamp Duty Land Tax

Examples

Unusual cases - where it may be unclear if SDLT evidence is required

S18.12 Deeds Remaining Liable to Stamp Duty

S18.11 Transitional Arrangements

S18.18 Appendix 5

S18.16 Appendix 3

S18.15 Appendix 2

S18.14 Appendix 1

S18.8 Self-Certificate

S18.19 Appendix 6

S18.10 Sasine Drafter Responsibilities

S18.9 Examination of Certificates

S18.3 The Keeper's Role

S18.7 Revenue Certificate

S18.4 What is a Land Transaction?

S18.5 The Certification Regime

S18.6 Office Procedure

S18.17 Appendix 4

S18.13 Land Transactions Involving Multiple Properties

S18.1 Introduction

S18.2 SDLT and Stamp Duty Compared