Home › Forums › Patrick Cannon › Is SDLT payable on the value of the property in the sale agreement? › Reply To: Is SDLT payable on the value of the property in the sale agreement?
I see. On the money laundering side an obligation could arise but only if the original return was fraudulent so that the money thereby saved in tax became criminal property. An honest mistake over the valuations which was subsequently corrected in the accounts would not in my view create a ML reporting obligation even though separately a tax penalty was possible under the SDLT legislation for not correcting a return subsequently found to have been incorrect as that is a civil matter and not criminal. The right thing to do in such a case would be for the client to inform HMRC and pay that additional tax and interest but that is for the client to decide and he may decide not to and risk a penalty. As a professional matter you may then ask yourself whether you could continue to act in such a case. However you may take the view that as long as there was no dishonesty so that the matter is not criminal then it is legitimate for the client to decide to do nothing as it is a civil and not a criminal matter. His deciding to do nothing should not then prevent you continuing to act. I am assuming however that you would not have counselled him not to report and pay as this could put you in an awkward position. This is all dependent of course on the nature of the original acts and if there was no dishonesty in completing and filing the return then it is a civil matter only.