HMRC SDLT: Guide to SDLT Payment Deadlines, Penalties, and Available Relief Options

Stamp Duty Land Tax (SDLT) Payment Guidelines

Stamp Duty Land Tax (SDLT) must be paid within 14 days of the transaction’s effective date. This timeframe was reduced from 30 days as of 1 March 2019. If a land transaction return is amended on or before the filing date, the tax is due by the filing date. Late payments incur interest, and penalties may apply for late returns. Various reliefs can reduce or eliminate SDLT, but if these are withdrawn, additional returns and payments are required. Special rules apply for deferred or postponed payments.

• SDLT is due within 14 days of the transaction’s effective date.
• Amendments to returns before the filing date do not change the payment deadline.
• Interest and penalties apply for late payments and returns.
• Reliefs like group relief and charities relief can reduce SDLT.
• If reliefs are withdrawn, additional returns and payments are due within 30 days.
• Deferred or postponed payments follow different rules.

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SDLTM00070 – Introduction to Stamp Duty Land Tax (SDLT): Payment of Tax – FA03/S86

Stamp Duty Land Tax, often known as SDLT, is a tax that homeowners or property buyers in the UK must pay when they acquire a property or land. Understanding when and how to pay SDLT is essential to avoid penalties and interest charges. Below are the key points and details regarding SDLT payment procedures.

Timing for Payment of SDLT

When you are involved in a land transaction, it is important to know when SDLT is due. The timeline for payment is as follows:

• For transactions effective on or after 1 March 2019, the SDLT must be paid within 14 days from the effective date of the transaction.
• For transactions that took place before 1 March 2019, SDLT was payable within 30 days of the effective date.

Filing Amendments and Payment Due Dates

If there are any changes to your land transaction return, the timing of these changes can affect when you need to pay the tax:

• If you amend your land transaction return before or on the filing date, you still need to pay the SDLT by the filing date.
• If you make changes after the filing date, payment becomes due immediately.

Consequences of Late Payment

It is crucial to pay your SDLT on time. Failing to do so can result in:

• Interest charges on the late payment. For more details on interest rates and late payments, visit HMRC’s website.
• Penalties if the land transaction return is submitted after the filing date. More information on penalties can be found in SDLTM50100.

Reliefs and Withdrawals: Reporting Requirements

Several reliefs can reduce or eliminate SDLT. If you have claimed any of the following reliefs and they are then withdrawn, you must act promptly:

• Group Relief: Refer to SDLTM23010 for details.
• Reconstruction or Acquisition Relief: See SDLTM23200 for information.
• Charity Relief: More about this can be found in SDLTM26000.
• Multiple Dwellings Relief: Note that this relief is set to end on 1 June 2024. See SDLTM29900 for more.
• Higher Rate Transactions: For cases involving higher rates, refer to SDLTM9500.
• Relief for Certain Acquisitions of Residential Property: Check SDLTM21000 for more.
• PAIF Seeding Relief and COACS Seeding Relief: Information can be found in the relevant guidance.
• Relief for First-Time Buyers: Additional details are available in specific sections.

If a relief you applied for has been withdrawn, you are required to submit a further return and pay any tax that is due within 30 days of the withdrawal.

HMRC Determinations and Assessments

In situations where HMRC issues a determination or assessment regarding SDLT, it is important to adhere to the payment deadline:

• The tax is due within 30 days from the date of the HMRC-issued determination or assessment. For further details, see SDLTM85900.

Deferral and Postponement Provisions

If you have applied for your SDLT payment to be:

• Deferred: This is applicable in cases where the consideration (payment) involved is contingent or uncertain. Additional guidance can be found in SDLTM50900.
• Postponed: This applies while awaiting the resolution of an appeal.

Understand that different rules and conditions apply in these situations. Always refer to the specific guidance for full details on how to proceed.

Key Takeaways for Paying SDLT

• Pay your SDLT on time to avoid interest and penalties.
• Be aware of the various reliefs that may affect your SDLT obligation.
• Act promptly if any relief you applied for is later withdrawn.
• Respond quickly to any determinations or assessments from HMRC.
• Understand the rules for deferring or postponing tax payments.

Familiarise yourself with these processes to ensure compliance and to manage your SDLT payments effectively. Further details can be obtained from the HMRC resources and the links provided above.

Useful article? You may find it helpful to read the original guidance here: HMRC SDLT: Guide to SDLT Payment Deadlines, Penalties, and Available Relief Options

View all HMRC SDLT Guidance Pages Here