Post completion and Tax

Question 1

Who submits the SDLT return?

Answer 1

Buyer’s solicitor on behalf of buyer

Question 2

When must an SDLT return be submitted and tax paid?

Answer 2

Within 14 days of completion

Question 3

How can solicitors prepare and submit the SDLT return?

Answer 3

HMRC online portal

Question 4

What does a buyer’s solicitor receive after submitting the SDLT?

Answer 4

SDLT5 certificate

Question 5

What is the tax in Wales?

Answer 5

Land Transaction Tax

Question 6

What is the timeframe for LTT?

Answer 6

Within 30 days of completion

Question 7

What must a solicitor do when a charge is given by a company?

Answer 7

Register at companies house

Question 8

What is the timeframe for registering a charge?

Answer 8

Within 21 day period starting the day after the creation of the charge

Question 9

What happens if the deadline to register a charge is missed?

Answer 9

apply to court allowing filing out of time

Question 10

What form is used for registered land?

Answer 10

AP1

Question 11

What does form AP1 include where the transaction is a purchase?

Answer 11

a) The transfer deed
b) SDLT5 or WRA certificate
c) Form DS1
d) Mortgage deed in favour of the buyer’s lender
e) certificate of registration of charge at Companies House
f) Other documents eg Death Certificate

Question 12

What form is used for unregistered land?

Answer 12

Form FR1, separate enclosures on form DL.

Question 13

What does form FR1 include?

Answer 13

a) All registered land enclosures
b) Epitome of title + deeds and documents
c) Land Charges searches (seller + previous owners)

Question 14

What form is used where there are overriding interests?

Answer 14

Form DI

Question 15

How is registration submitted for registered land?

Answer 15

Online

Question 16

How is registration submitted for unregistered land?

Answer 16

post or DX

Question 17

What is the land registry deadline for unregistered land?

Answer 17

2 months of completion, otherwise void

Question 18

What is the SDLT rate for first time buyers?

Answer 18

• First £425,000 = no SDLT
• 5% on anything over

Question 19

What is the SDLT rate for second properties?

Answer 19

additional SDLT of 3%

Question 20

Does LTT have first time buyer’s allowance?

Answer 20

No

Question 21

When does CGT arise?

Answer 21

• there is a chargeable disposal
• of a chargeable asset
• by a chargeable person
• which gives rise to a chargeable gain

Question 22

Is a gift on death chargeable disposal?

Answer 22

No

Question 23

When will a property not be a chargeable disposal?

Answer 23

main home that qualifies for private residence relief

Question 24

Who is a chargeable person?

Answer 24

individual who is a UK taxpayer for relevant tax year

Question 25

When calculating the chargeable gain, what can be taken into account?

Answer 25

Allowable expenditure

Question 26

What is allowable expenditure?

Answer 26

- costs incurred in acquiring the asset (eg conveyancer fees) - costs incurred that contribute to the value of the asset (eg cost of building extension, but not cost of maintenance) - costs incurred in disposing of the asset (eg conveyancer/estate agent)

Question 27

What is the CGT annual exemption?

Answer 27

£6000

Question 28

What are the requirements for private residence relief?

Answer 28

* been the person’s main home for all the time that they lived in it * they have not let it out (other than lodger) * not been used for business purposes (one temp office room okay) * the grounds including all buildings are less than 5,000 square metres * it was not bought just to make a gain

Question 29

What happens for private residence relief if not all the conditions are met?

Answer 29

can be reduced or not available at all