Keeper's Corner

SDLT: common mistakes

Solicitors are reminded that the Keeper cannot accept a deed/application in respect of a land transaction for registration in the Land Register of Scotland, General Register of Sasines or Books of Council and Session unless it is accompanied by a Revenue certificate or SDLT60 (“self certificate”) as appropriate (section 79(1) of the Finance Act 2003). We currently reject some 6% of deeds/applications relating to a land transaction because of a failure to submit the appropriate certificate.

Rejection most frequently arises in relation to conveyances where the consideration is under £60,000 where instead of a Revenue certificate the Keeper often receives either a self certificate or no certificate. All conveyances for a consideration, no matter how small that consideration may be, must be notified to the Inland Revenue on a land transaction return. The Inland Revenue will in turn issue a Revenue certificate, which must then accompany the deed/application when it is submitted for recording/registration.

The most common reasons for the rejection of SDLT60 self certificates are a failure to sign the certificate or a failure to indicate on the certificate the reason why notification to the Inland Revenue is not required.

The Agency’s website www.ros.gov.uk contains a list of the questions most frequently put to the Keeper on stamp duty land tax along with his response. The website also contains a copy of the recent Registers Update on SDLT, which sets out the registration requirements imposed by the Finance Act 2003.

Solicitors are asked to note that a copy of the self certificate (SDLT60) can be accessed on the Agency’s website. We do not hold copies of the land transaction return or the supplementary returns. These can be obtained from the stamp taxes orderline on 0845 302 1472.

Contact john.king@ros.gov.uk

Post-feudal burdens

By virtue of section 4 of the Title Conditions (Scotland) Act 2003 it will be necessary when creating praedial real burdens, i.e. those types of real burden which can only be constituted in favour of a person in their capacity as proprietor of specified land (the “benefited property”), to register the constitutive deed against both the property which will be subject to the real burden (the “burdened property”) and the benefited property. This is known as dual registration.

These provisions apply only to such deeds presented on and after the appointed day, which is 28 November 2004.

The Keeper is already receiving applications requesting dual registration. Until the appointed day, the Keeper cannot give effect to applications for dual registration against the benefited property, nor will he accept a deed for recording in the Register of Sasines against the benefited property. However, the Keeper will accept deeds containing the new terminology for registration and recording against the burdened property, in the normal way.

Contact: sarah.duncan@ros.gov.uk

Registration of company securities

The profession is aware that section 410 of the Companies Act 1985 requires registration of a limited company standard security in the Register of Charges within 21 days of its registration in the Land Register. Subsequent failure to submit evidence of registration in the Register of Charges leads to an exclusion of indemnity in the title sheet.

Although not a statutory requirement, we are happy to assist solicitors in meeting the 21 days requirement by providing a letter confirming the date of registration of a limited company security in the Land Register (Registration of Title Practice Book, paragraph 5.48).

As a reminder to solicitors wishing to receive a letter of confirmation, it is necessary to write the words “CONFIRMATION OF REGISTRATION IS REQUIRED” in block capitals on the top of the first page of the Form 2 and any other application forms accompanying the debtor’s application for registration. This will ensure that confirmation is sent out within the required 21 days. If, after following these instructions, you have not received a letter of confirmation within 10 working days of submitting your application, please contact our customer service centres in Edinburgh or Glasgow, who will investigate the reasons for delay.

Contact marcus.mackenzie@ros.gov.uk, Edinburgh Customer Service Centre Manager; alan.raeburn@ros.gov.uk, Glasgow Customer Service Centre Manager

ARTL in two years’ time?

Progress continues on the Agency’s Automated Registration of Title to Land (ARTL) project which aims to introduce paperless, electronic registration for routine Land Register transactions. The Keeper has received confirmation that the legislative changes that would be necessary to permit the delivery of ARTL could competently be made by secondary legislation. This allows the Keeper to develop the proposals on ARTL to an advanced stage so that a final decision on the project may be taken, making possible a rollout of the system commencing in 2006. We will continue to work closely with the Law Society in developing the detail of the proposals and will keep the profession informed on progress by regular updates in Keeper’s Corner, Registers Updates and the Agency’s website.

andrew.martin@ros.gov.uk

Direct debit pilot to start

In our article in the October 2002 Journal, we confirmed our intention to widen our payment methods for solicitors to include direct debit and draw-down accounts. We are pleased to report that following the successful piloting of draw-down accounts, which has proved beneficial to both customers and the Agency, we are soon to begin piloting direct debit payments and will be contacting some firms to assist us in this piloting exercise. We recognise that direct debit payments will suit a higher proportion of customers who wish to cease transacting by cheque. We hope that by providing a wider range of choice in terms of payment mechanisms, we will be able to meet the needs of individual firms.

Our overarching objective is, as always, to improve customer service and a benefit of electronic payment has been a reduction in the number of returned applications due to errors in cheques.

Contact margaret.archer@ros.gov.uk

Community Interests to go live

It is anticipated that Part 2 of the Land Reform (Scotland) Act 2003 will come into force in May of this year. As highlighted in Keeper’s Corner in the August 2003 edition of the Journal, this will also bring into being a new register to be known as the Register of Community Interests in Land, kept by the Agency.

That article also highlighted a number of features of the register, which will be available on the internet (free of charge) at www.ros.gov.uk/rcil.

A Registers Update will be issued shortly in connection with the launch of the new register and its implications in particular for applications in the Land Register. The Update will also be published on the Agency website at www.ros.gov.uk.

Contact: sarah.duncan@ros.gov.uk