SDLT filing and payment date changes
A consultation document on proposed changes for the filing and payment of Stamp Duty Land Tax (SDLT) was published in the summer. The main proposal was for the filing and payment period for SDLT to be reduced from 30 days to 14 days. SDLT is a tax that is payable on the purchase or transfer of land and property in England, Wales and Northern Ireland.
The consultation closed earlier this month and the Chartered Institute of Taxation (CIOT) have released the comments they made on the proposed changes. The CIOT recognised that this change made sense for straightforward residential sale and purchase transactions. However, the CIOT had concerns that the time limit would be difficult to meet in the case of some complex commercial transactions and for deferment applications. The CIOT suggested changing the time limit from 14 days to 14 working days which would lengthen the time to file and also benefit taxpayers especially over bank holiday periods.
It will be interesting to see if HMRC takes these concerns on-board. The new measure is expected to come into effect between 1 January 2018 and 1 March 2018. The proposals also called for the introduction of an upgraded system that will allow for online filing and electronic payment details to be submitted simultaneously.
There are currently no plans to amend other provisions in the SDLT legislation which contain a 30 day time limit, for example, the requirement to make a return where as a result of new information, a transaction becomes notifiable or additional tax becomes payable.