Guidance on SDLT Compliance, Enquiries, and Appeals Procedures for Land Transactions

HMRC enquiries into SDLT returns

HMRC can formally check a Stamp Duty Land Tax return or an amendment after it has been filed, so submission does not always make the position final. It must open the enquiry by written notice within the correct 9-month time limit, and the enquiry stays open until HMRC issues a written closure notice explaining its conclusions and any changes to the return.

• HMRC may enquire into either the original SDLT return or an amendment to that return.
• It does not have to give a reason for opening an enquiry, but it must notify the purchaser in writing.
• If the return was filed on time, HMRC normally has 9 months from the filing date to open the enquiry.
• If the return or amendment was filed late, HMRC normally has 9 months from the date it received it.
• Only one enquiry notice can be given for the same return or the same amendment under this power.
• The enquiry ends only when HMRC sends a closure notice stating the enquiry is complete, its conclusions, and any amendments; any dispute may then move into the appeal process.

Scroll down for the full analysis.

HMRC enquiries into SDLT returns: when they can open one and what it means

This page explains HMRC’s power to open an enquiry into a Stamp Duty Land Tax return or an amendment to a return. The rule matters because an SDLT filing is not necessarily final as soon as it is submitted. HMRC may review it within a set time limit, and if they do, the enquiry must follow a formal process.

What this rule is about

The source material deals with HMRC compliance checks under Schedule 10 to the Finance Act 2003. In simple terms, it explains when HMRC can formally enquire into an SDLT return, how long they have to start that enquiry, and how the enquiry must be brought to an end.

This is different from the substantive SDLT rules about tax rates, reliefs, chargeable consideration, or whether a transaction is notifiable. It is about procedure: how HMRC checks a return that has already been filed.

What the official source says

According to the HMRC manual, HMRC may open an enquiry into:

• a land transaction return, or
• an amendment to a return.

HMRC does not need to give a reason for opening the enquiry. It does so by sending written notice to the purchaser.

The enquiry must be opened within a defined period. The manual states that:

• if the return was delivered on or before the filing date, the enquiry window ends 9 months after the filing date;
• if the return or amendment was delivered late, the enquiry window ends 9 months after the date HMRC received it.

The manual also says:

• the enquiry must be closed by written notice;
• that closure notice must state the completion of the enquiry, HMRC’s conclusions, and any amendments needed;
• only one notice of enquiry may be given in relation to a land transaction return or amendment.

The source then points readers to HMRC’s wider Compliance Handbook and to HMRC’s guidance on appeals and tribunal procedure.

What this means in practice

The practical point is that filing an SDLT return does not immediately put the matter beyond review. HMRC has a statutory window in which it can open an enquiry, even if there is no obvious error and even if it does not explain why it is asking questions.

The enquiry is opened by written notice to the purchaser. In practice, that means there needs to be a valid formal notice. General correspondence is not necessarily the same thing as a statutory enquiry notice.

If HMRC opens an enquiry in time, the return remains under formal review until HMRC issues a closure notice. That closure notice is important because it should tell the purchaser:

• that the enquiry is finished,
• what HMRC has concluded, and
• whether HMRC says the return needs to be amended.

The statement that only one notice of enquiry is permitted means HMRC cannot keep opening repeated enquiries into the same return or the same amendment under this particular power. That gives the purchaser some procedural protection.

The reference to appeals matters because if HMRC amends the return or makes an appealable decision at the end of the enquiry, the dispute may then move into the review and appeal framework rather than remaining simply a compliance check.

How to analyse it

If you are trying to work out whether HMRC has validly opened an SDLT enquiry, the useful questions are:

• What document is HMRC enquiring into: the original return or an amendment?
• When was that return or amendment delivered to HMRC?
• Was it delivered on time or late?
• What is the relevant 9-month deadline for opening the enquiry?
• Did HMRC give written notice to the purchaser within that deadline?
• Has HMRC already opened an enquiry into that same return or amendment?
• Has HMRC issued a proper closure notice, and if so, what conclusions and amendments does it contain?

It is also sensible to distinguish between:

• an enquiry into the original return, and
• an enquiry into an amendment to that return.

The source material treats both as possible subjects of enquiry. That distinction can affect the timing analysis.

Example

Illustration: a purchaser files an SDLT return on time. HMRC receives it before the filing date. In that case, the normal enquiry window runs until 9 months after the filing date. If HMRC sends a written enquiry notice to the purchaser within that period, the enquiry is opened in time.

If instead the purchaser files an amendment late, the manual says the relevant period runs to 9 months after HMRC received that amendment. HMRC would need to give written notice within that later period if it wants to enquire into the amendment.

Why this can be difficult in practice

The source material is brief and procedural, so real cases can raise points it does not spell out in detail.

One practical difficulty is identifying the correct starting point for the 9-month period. That depends on whether the filing was on time or late, and whether HMRC is enquiring into the original return or an amendment.

Another issue is whether a piece of HMRC correspondence is truly a statutory enquiry notice. The manual says the enquiry is opened by written notice to the purchaser, but disputes can arise if the communication is informal, unclear, or sent to the wrong person.

There can also be a difference between what the legislation permits and how HMRC describes its operational approach in manuals. The manual is useful guidance, but the legal position ultimately depends on the statute and, where relevant, case law interpreting it.

Finally, the source does not explain the full appeal mechanics. It simply points to HMRC’s appeals guidance. So once an enquiry has been closed and HMRC has made an amendment or other appealable decision, the next steps depend on the separate review and appeal rules.

Key takeaways

• HMRC can open an SDLT enquiry into a return or an amendment without giving a reason, but it must do so by written notice to the purchaser.
• The enquiry must be opened within the statutory 9-month window, which runs from the filing date for an on-time return, or from receipt if the filing or amendment was late.
• An enquiry remains open until HMRC issues a written closure notice setting out its conclusions and any amendments to the return.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guidance on SDLT Compliance, Enquiries, and Appeals Procedures for Land Transactions

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