- Churchill Tax
Stamp Duty Land Tax – SDLT Avoidance Schemes Limit Removed
DOTAS extented. Since November 1 more Stamp Duty Land Tax (SDLT) saving and avoidance schemes have come within HMRC’s Disclosure of Tax Avoidance Schemes (DOTAS) system. This requires those who create, promote or sell schemes, for most types of tax, to notify the details to HMRC. It then decides whether or not the scheme requires a DOTAS reference, known as a Scheme Reference Number (SRN). This is very important for individuals or companies using them.
Your tax return
Where you or your company uses an SDLT tax scheme, check whether it has an SRN with the person or company that suggested or sold it to you. If it has you must report this on your tax return or Form AAG4 (SDLT) for the year, or years in which you obtain a tax advantage from it. A penalty of at least £100 applies if you don’t.
Conclusion
From November 1 2012 DOTAS reporting limits for SDLT schemes have been removed. This means all schemes designed to limit or avoid SDLT must be reported on your tax return or Form AAG4. If you don’t, then penalties starting at £100 can apply.