SDLTM50400 | Procedure: Further land transaction return where relief is withdrawn FA03/S81

There are certain circumstances where a further return will be required when relief from SDLT has been claimed, and that relief is later withdrawn.

The reliefs and further returns

Where relief was claimed, and is later withdrawn to any extent in respect of:

• Certain acquisitions of residential property (para11 of Schedule 6A FA03) – See SDLTM21010

• Group relief, reconstruction relief or acquisition relief (Parts 1 or 2 Schedule 7 FA03) – See SDLTM23000

• PAIF seeding relief (under paras 5, 7 or 8 Schedule 7A FA03) – See SDLTM24700

• CoCS seeding relief (under paras 13, 17 or 18 Schedule 7A FA03) – See SDLTM24700

• Charities relief (Schedule 8 FA03) – See SDLTM26000

because a disqualifying event occurs, a further return must be made within 30 days of that event.

For each withdrawal provision, the 'disqualifying event' is defined at s81(4) FA 2003

Where relief was claimed, and is later withdrawn to any extent in respect of:

• The Higher rate for certain transactions (under paras 5G to 5L of Schedule 4A) – See SDLTM09500

• Special tax sites, other than where alternative finance arrangements apply (Part 3 Schedule 6C FA03) – See SDLTM20200

• PAIF Seeding Relief (under para 6 Schedule 7A FA03) – See SDLTM24700

• CoCS Seeding Relief (under paras 14 or 16 Schedule 7A FA03) – See SDLTM24700

because the requirement or test was not met on the relevant date, a further return must be made within 30 days of the relevant date.

For each withdrawal provision, the 'relevant date' is defined at s81(1B) FA 2003

Further Return Requirements

All further returns must be made in the form of a letter to HMRC at this address.

The further return must include the UTRN of the original return and a self assessment of the tax now due. Full payment of the SDLT due must be paid by the filing date of the further return.

Modifications to Schedule 10 FA03 - Returns, enquiries, assessments and appeals

The provisions of FA03/SCH10 apply to a land transaction return made under FA03/S81 in the same way as they apply to a land transaction return submitted under FA03/S76, with the following modifications:

• References to a requirement to deliver a land transaction return are read as references to the further return

• References to the transaction to which the return relates shall be read as the withdrawal of relief in respect of which the return is required

• References to a chargeable transaction to which (as yet) no return relates shall be read as the withdrawal of relief

• the effective date of the transaction shall be read as the date on which the disqualifying event or the relevant date (as appropriate) occurs

• where a further return is to be made by the relevant successor, any references to the purchaser are to be read as references to the relevant successor

• an appeal is also permitted under para36(5A) Schedule 10 FA03 on the basis that a further return is not required