SDLTM50350 | Procedure: Later linked transaction - Section 81A Finance Act 2003

1: Original transaction notified on SDLT1 but no tax was due.

• Original return notified but consideration below the threshold

• Later linked transaction takes place resulting in the need to revisit the original return and tax now due.

• SDLT1 required for subsequent transaction

• Further return required in respect of original return- this takes the form of a letter to the Stamp Office, it should contain:

• UTRN of the original return

• Details of consideration on second transaction

• Self assessment of tax now due (if applicable)

• Payment of tax within 30 days of later linked transaction

2: Original transaction notified and tax paid.

• Original return notified and tax paid at rate applicable

• Later linked transaction takes place resulting in the need to revisit the original return and additional tax now due.

• SDLT1 required for subsequent transaction

• Further return required in respect of original return- this takes the form of a letter to the Stamp Office, it should contain:

• UTRN of the original return

• Details of consideration on second transaction

• Self assessment of any additional tax now due

• Payment of tax within 30 days of later linked transaction

3: Original transaction was not notifiable

• Original return not notified as below notification threshold

• Later linked transaction takes place resulting in the need to revisit original, notification may now be required and additional tax may be due (if notification still not required no further action need be taken in respect of the transactions),

• If notification is required - SDLT1 should be lodged for subsequent transaction, in the normal way and SDLT 1 is now required for original transaction, this should be sent to the Stamp Office, accompanied by a letter containing the following details:

• UTRN of the subsequent return

• Details of consideration on second transaction

• Self assessment of any additional tax now due

• Payment of tax (within 30 days of later linked transaction)

From 1 March 2019, where the original transaction becomes notifiable for the first time, the return must be made and tax due paid within 14 days of the later linked transaction.