Stamp Duty Land Tax (SDTL1) form for buying a leasehold property

yougotpickled

We are currently buying a leasehold property and we have been given the SDTL1 form for review by the solicitor. For Q2 "description of transaction" they have entered Code "F" which seems to be for a freehold property based on the guidance and is not applicable for a leasehold ("for an acquisition of any freehold interest in land where no lease is involved"). We believe that it should instead be Code "A" (for the acquisition of all interests where there is a lease involved). 

We have raised this with our solicitor but they are adamant that it should be Code "F" and they haven't been able to explain why we are wrong.

Could anyone on here who has purchased a leasehold property let me know how this question was answered for them?

SDLT_Geek

yougotpickled said:

We are currently buying a leasehold property and we have been given the SDTL1 form for review by the solicitor. For Q2 "description of transaction" they have entered Code "F" which seems to be for a freehold property based on the guidance and is not applicable for a leasehold ("for an acquisition of any freehold interest in land where no lease is involved"). We believe that it should instead be Code "A" (for the acquisition of all interests where there is a lease involved). 

We have raised this with our solicitor but they are adamant that it should be Code "F" and they haven't been able to explain why we are wrong.

Could anyone on here who has purchased a leasehold property let me know how this question was answered for them?

Yes, it should be Code A on the SDLT1, not Code F.  Using Code A means that they will then have to enter a few basic details about the lease onto the return.  Do not sign the form if it still has Code F on it!

Perhaps they are confused by the SDLT calculator, which says to put in "Freehold" if taking the assignment of an existing lease: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/holding