S18.2 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 as of December 1 (and subject to the transitional arrangements detailed in paragraph 7) deeds will no longer be stamped, denoted or otherwise contain reference to stamp duty. The one exception to this is as regards certain specific transactions involving partnerships (see paragraph 8).

• Solicitors will no longer submit deeds to 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 will, 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 setting out the reason why notification is not required. A further limited category of land transactions are exempt from both notification to the Inland Revenue and Self-certification.

• 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 the appropriate certificate.

• With stamp duty the Keeper has to ensure that deeds are properly stamped, denoted or otherwise certified exempt. This has meant that the Keeper has had to have a detailed knowledge of the rates of tax applicable and the bands under which it operates. Under SDLT the Keeper’s sole responsibility is to ensure the correct certificate is presented to him where that is required. He is unconcerned as to whether the correct liability for SDLT has been notified to the Revenue.