The higher rates of SDLT on additional residential properties come into force on 1 April 2016 and affects purchases of second homes and buy-to-let properties.

Under the new SDLT levy system, for returns where the transaction is liable to the higher rates of SDLT, the code 04 should normally be entered in the first question on type of property in the SDLT return on gov.uk.

However, due to a technical problem, if customers try to file a return with the new code 04 and also claim multiple dwellings relief (code 33 in question 9), they will receive an error message advising that multiple dwellings relief is only available for code 01 or code 02 type of properties.

This is due to a technical issue affecting the online system and HMRC is working to resolve this as quickly as possible. Meantime, it has issued an alternative approach to circumnavigate the error, which includes contacting an HMRC office to confirm the online transaction.

Until the issue is fixed, those filing SDLT need to:

• input code 28 ‘other relief’ in question 9;
• as previously, customers will need to calculate the tax due and input this into the return. This will need to be based on the higher rates and the multiple dwellings relief; and
• contact Birmingham Stamp Office to confirm that you are claiming multiple dwellings relief so that HMRC can amend your return

Birmingham Stamp Office will contact customers to confirm the amendment has been completed.

For those claiming multiple dwellings relief where the transaction is not liable to the higher rates of SDLT then continue to choose code 01 or code 02 in the first question, followed by code 33 ‘multiple dwellings relief’ in question 9.

Non-residential rates of SDLT

HMRC is updating its SDLT return to include the new non-residential rates which were introduced in Budget 2015 and come into force for the new tax year 2016.17. This will be updated in due course.

Until the IT software has been updated, advisers are told to continue to file online but the SDLT return will not automatically calculate the tax due on non-residential transactions.

For these types of transactions, until the IT issue is resolved, HMRC tells advisers to use the SDLT calculator to work out how much tax is payable and input the right amount into the SDLT return.

For the latest HMRC information on service availability issues for SDLT click here