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Where Taxpayers and Advisers Meet

Is SDLT return required for gift?

trainline
Posts:26
Joined:Sat Oct 02, 2021 4:25 pm
Is SDLT return required for gift?

Postby trainline » Wed May 11, 2022 7:17 pm

Good evening,

Scenario is this: a couple of relatives gifted 50% of a residential freehold property equally to my three adult children. On a current market value this is worth £46,666 per child. No payment or other financial consideration was paid, there is no mortgage or any other obligation.

Reading the SDLT guidance I believe no return is required but the relative’s solicitor thinks a return is required though there is no SDLT to pay. We can’t get through to the helpline at all!

Can anyone offer a definitive view on this?

Thanks
T

AGoodman
Posts:1734
Joined:Fri May 16, 2014 3:47 pm

Re: Is SDLT return required for gift?

Postby AGoodman » Fri May 13, 2022 2:36 pm

"You do not have to pay SDLT or file a return if:

no money or other payment changes hands for a land or property transfer"

https://www.gov.uk/stamp-duty-land-tax/reliefs-and-exemptions

No obligation to file a return: see item 1, section 77A(1), Finance Act 2003

AGoodman
Posts:1734
Joined:Fri May 16, 2014 3:47 pm

Re: Is SDLT return required for gift?

Postby AGoodman » Fri May 13, 2022 2:37 pm

You likely still have to file a CGT return

trainline
Posts:26
Joined:Sat Oct 02, 2021 4:25 pm

Re: Is SDLT return required for gift?

Postby trainline » Mon May 23, 2022 9:21 pm

Thank you both.
HMRC have said an SDLT1 must be completed even though there is no consideration as such and there will be no tax to pay.
They have also said that my wife and I, whose share in the property is unaffected by the gift, need to be included on the form. I don't understand why as we are neither a "purchaser", a giftor or giftee, nor a "vendor"?

regards
T

pawncob
Posts:5089
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Is SDLT return required for gift?

Postby pawncob » Tue May 24, 2022 10:54 am

As no duty is payable, the penalty for failure to submit is also NIL as it's a % of the duty due.
https://www.gov.uk/guidance/stamp-duty-penalties-appeals-and-interest
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts:1734
Joined:Fri May 16, 2014 3:47 pm

Re: Is SDLT return required for gift?

Postby AGoodman » Tue May 31, 2022 6:26 pm

Given we don't know the details, I would suggest that you ask your solicitor and/or HMRC why the exemption for nil consideration under item 1, section 77A(1), Finance Act 2003 does not apply.


Return to “Stamp Duty, Stamp Duty Land Tax, SDLT”

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