Revenue and Customs Brief 8 (2013): treatment of Stamp Duty Land Tax
Published 15 April 2013
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Purpose of this brief
The purpose of this brief is to explain HM Revenue and Customs’ (HMRC’s) policy on the treatment of Stamp Duty Land Tax (SDLT) following the decision of the Tax Tribunal in the case of Robinson Family Ltd. ([2012] UKFTT 360 (TC), TC02046). This information should be read in conjunction with Revenue and Customs Brief 30 (2012).
Readership
Thisbrief is for traders who enter into property transactions (other than solely as an occupier), and their advisers.
Action required
To note the contents of this brief.
Introduction
Revenue and Customs Brief 30 (2012) sets out policy changes in relation to transfers of a going concern (TOGC) following the Tribunal’s decision in the Robinson Family Ltd case. HMRC said that they would provide guidance on the adjustment of Stamp Duty Land Tax (SDLT). This brief does this.
SDLT
There may be situations where for a variety of reasons, not just those discussed in Brief 30 (2012), tax was charged on the grant of an interest in land when in fact the transaction qualified as the transfer of a going concern, and no VAT was chargeable. This would have resulted in SDLT being assessed on a VAT-inclusive value rather than a VAT-exclusive one.
If a business believes that it has overpaid SDLT on such a transaction, it may make a claim for overpayment relief. The legislation relating to such claims is at schedule 10, paragraph 34, FA 2003.
The criteria that must be met and the exclusions from claims are set out at paragraph 34A of Schedule 10. Guidance can be found in the Stamp Duty Land Tax Manual (SDLTM) at SDLTM52500 and 54000.
Case G (liability calculated in accordance with practice generally prevailing - SDLTM54170) will not apply to exclude a claim where the amount of the chargeable consideration has been reduced as a result of a reduction in VAT following this case.
Claims must be made within 4 years of the date of transaction. HMRC will be unable to accept any refund requests for transactions that took place more than 4 years before the date of claim.
Issued 15 April 2013