BTL Substantial performance, SDLT1 questions

Everoblidged

Hi,

Please note that I was hoping 2 claim MDR relief as it stands abolished from 1st June but my solicitor suggested to take the keys to the property and do an agreement for exclusive possession with payment of rent to show substantial performance but is asking for a ridiculous amount to fill the SDLT forms but I think with a little bit of help I could fill them on my own as I had paid an exorbitant amount for expiration completion which went to waste due to delays from Lender.

I wonder if someone can guide me on how to fill the SDLT1 Form and which other forms need to be filled along with it as I presume it will be SDLT4 X 2 and SDLT3 X 3 since I am buying 3 properties together in a Company. The sale was to be completed on 31st May but has been delayed to 7th June due to lender not releasing funds in time but the exchange was done on 31st May 2024.

A license to occupy was done to show substantial performance as per 

SDLTM07900A - Scope: When is stamp duty land tax chargeable: Contracts and substantial performance: Purchaser takes possession FA03/S44(5)(a)

as Keys to the property have been received, as a purchaser I will be paying rent for a week and also receiving rent from one of the properties which is already let out apart from being able to sign a new rental lease for the 2 properties to commence no earlier than the date of completion though.


I wonder if someone can guide me as to whether I need to fill 2 sets of paperwork as in to notify for substantial performance  and completion with SDLT being payable on the latter transaction ie. completion.

To sum it up, I will be obliged if someone has experience and can answer my questions.

I will name it SET 1(Substantial performance which would include SDLT1, SDLT4 x 2 and SDLT3X2) & SET 2 (Completion which would include SDLT1, SDLT4 x 2 and SDLT3X2)

Question 2 — description of transaction (since even though it is termed license to occupy but conditions like having exclusive occupation, access to keys and being able to take rent and also pay rent make it a lease)

which code should I use for SET 1 (Should it be L, A or O) even though I think it should be O but need a second opinion. For SET 2, I intend to use F

Q3 Question 3 — interest transferred or created 

Code	When to use the code
FG	Freehold (in Scotland ownership) subject to one or more leases each reserving a ground or nominal rent
FP	Freehold with vacant possession In Scotland owners interest with vacant possession
FT	Freehold subject to a lease or tenancy In Scotland owner’s interest subject to tenancy
LG	Long leasehold at a ground or nominal rent with vacant possession
LP	A lease to an occupier or with vacant possession and not a ground rent or nominal rent In Scotland tenant’s interest
LT	Leasehold subject to leases to an occupier
OT	For anything else, use code OT

I know I will use FP for SET 2 but don't know which code to use for SET 1.

Question 4 — effective date of transaction

I think for SET 1, it would be 31 may 2024 as exchange was 

Question 15 — total amount paid or enclosed with this notification

 and substantial performance was also done as mentioned, But for set 2, I am not sure as the completion take place on 7th June but effective date of transaction could be the date of substantial performance ie. 31st may 2024.

Question 6 — date of contract or conclusion of missives

I think for SET 1 and SET 2 it will be 31st May 2024

Question 14 — total amount of tax due for the transaction

Just put the total amount of tax for all 3 transaction in both SET 1 and SET 2.

Question 15 — total amount paid or enclosed with this notification

SET1 0
SET2 The tax amount as put in answer to Q14.

I hope someone can guide me and help me and I'll be everobligded.

Thanks

Everoblidged

For Context the following conditions were put in

1.             The right for the Licensee to the keys of the property and use the property exclusively to arrange viewings.

1.1          To use Service Media serving the Property.

1.2          Take measurements of various rooms, place orders and arrange to fit out wardrobes, cabinets, beds, side tables, white goods or any other appliances besides being able to place decorative items to enhance the appearance of the property as deemed fit.

1.3          Entitled to any rents (w.e.f. 31st May 2024 up to the 6th June 2024 or date of completion whichever is earliest) from any part of the property which licensee does not occupy.

1.4          To sign lease agreements to commence no earlier than the date of completion i.e.6th June 2024.

Everoblidged

Wonder if I am complicating things and only 1 Set is enough considering that SDLT forms have different UTRN numbers

Everoblidged

I checked SDLTM50250 and it seems thet I could fill in documentation as per SET 2 only, pay taxable amount based on 3% of the amount paid on exchange and sent the remaining amount on completion as per SDLTM50250.