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Latest figures show that one in two legal practitioners are now submitting Stamp Duty Land Tax (SDLT) forms online.

The percentage of solicitors and conveyancers submitting forms electronically has more than doubled in a year. In December 2006, 35,753 registered online, 22 per cent of all legal practitioners, but by December last year that number had increased to 65,346, up to 46 per cent.

A research study into online filing, published on the HMRC website, has confirmed that solicitors and conveyancers have said the main benefit of online filing is that it makes "registration clear and easy". A smooth and easy to use system for SDLT is essential as the world's largest property database of over 21 million titles is held by Land Registry England and Wales. Around £1 million worth of property is processed every minute in England and Wales.

The research found the other benefits for those using online filing are:

• the ability to print off an immediate land transaction certificate;
• general speed/turnaround time and ease of completion;
• fewer errors as the system highlights mistakes as you go along;
• fewer document losses and delays; and
• fewer SDLT 8s (HMRC form used for missing items/errors), fines and frustrations.

HMRC Head of Stamp Taxes for Online Services, Sally Mills, said:

"By providing an online filing system, we have simplified the processes for solicitors and conveyancers, and this increase in the numbers of people filing online for SDLT certificates shows that we are moving in the right direction. We are very pleased at their high take-up of online filing.

"Filing online is quick, easy and convenient. If you submit a return online, you'll automatically be sent a Land Transaction Certificate (Form SDLT 5) electronically, saving both time and resources. You then print off the electronic certificate and send it to the relevant land registry, which registers change of ownership."

Practitioners can find details on the SDLT Online Service by visiting the HMRC website at: http://www.hmrc.gov.uk/so/online/menu.htm

Stamp Duty Land Tax (SDLT) replaced Stamp Duty on land and property transactions in the UK. Although a return is required for every transaction, tax is only paid on transactions over £125,000. Previously, the solicitor/conveyancer would send the relevant transaction documents to the 'Stamp Office' for 'stamping'. The buyer's solicitor, or the licensed conveyancer then sent the stamped documents to Land Registry. Under SDLT, the purchaser must submit a Land Transaction Return (SDLT 1) (including any relevant supplementary forms) to HMRC, and pay the tax due, within 30 days of the transaction. The returns can either be submitted manually using paper forms or electronically, using the SDLT Online service. HMRC will acknowledge receipt of the Land Transaction Return with a Land Transaction Certificate (SDLT 5). The change of ownership of the property cannot be registered with Land Registry without this certificate.

Link

HMRC: Stamp Duty Land Tax