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Understanding Stamp Duty and Stamp Duty Land Tax (SDLT)
06th January 2012

Stamp duty was first introduced in England in 1694. Duty had to be paid on newspapers, pamphlets, advertisements, playing cards, dice, hats, patent medicines, perfumes, insurance policies, gold and silver plate. stamp duty was largely abolished in the UK from 1 December 2003.

The Finance Act 2003 introduced The “stamp duty land tax” (SDLT) this was a new tax in land transactions and largely replaced Stamp Duty. SDLT is a form of self-assessed transfer tax and is generally payable on the purchase or transfer of property or land.

Here at PLS Solicitors, once completion has taken place we will file a tax return on your behalf via the HMRC online portal. This is the quickest and most efficient way to file a return, if tax is not payable a return must still be made. This must be received by HMRC within 4 weeks of the transaction completing otherwise a penalty may be issued. The penalty is for failure to provide the return on time and not for failing to pay the tax. Once we have inputted the required information we immediately receive a Stamp Duty Land Tax certificate which will then be used to register you as the new owner of your property. Without this certificate it is impossible to register a change in the ownership of the land. Please refer to Our Guide to Conveyancing under the section “completion of your move” to see where the filing of the SDLT certificate ranks in the conveyancing process.

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