Can HMRC agree more time to answer an SDLT enquiry?

Introduction

Readers often ask whether HMRC can extend the deadline for replying to questions during an open Stamp Duty Land Tax enquiry. This usually comes up when HMRC has asked for further information and the taxpayer needs more time to gather documents, take advice, or prepare a proper response.

The short answer is yes. In an open SDLT enquiry, HMRC can agree a reasonable extension of time for the taxpayer to reply. If HMRC confirms the extension, the taxpayer should work to the new deadline and keep a clear record of that agreement.

The Question

A taxpayer involved in an SDLT compliance enquiry had received a letter from HMRC asking for further information by a stated deadline. Before that deadline expired, the taxpayer asked HMRC for an extra 30 days so that supporting material could be collected and a full response prepared. HMRC then confirmed by email that the extension was granted and gave a new response date.

The issue is whether that extension is effective and what practical significance it has for the enquiry.

Nick’s Explanation

Nick’s view was straightforward: once HMRC confirmed the extension, the taxpayer had secured additional time to respond and should now use that period to prepare the substantive reply carefully.

In anonymised form, his response was essentially: “Thank you very much. I’ll be working on your case over the next couple of days, so expect further correspondence from me.”

That reflects the practical position. The key point is not the formality of the wording but the fact that HMRC clearly agreed to move the deadline. Where HMRC states that it is “happy to grant” an extension and specifies the new date, that is strong evidence that the revised timetable applies.

The Law

SDLT enquiries are governed by Schedule 10 to the Finance Act 2003. That Schedule sets out HMRC’s powers to enquire into a land transaction return and the procedural framework for dealing with the enquiry.

In practice, once an enquiry is open, HMRC may ask the taxpayer for explanations, documents, and supporting evidence relevant to the return. The legislation and HMRC’s enquiry process allow matters of timing and procedure to be managed during the enquiry. That includes agreeing a reasonable extension where more time is needed to provide a proper response.

Although the legislation is most often concerned with HMRC’s formal powers and the closure of enquiries, ordinary case management during an open enquiry commonly includes correspondence about deadlines. If HMRC agrees to extend time, that agreement should be treated seriously and retained with the enquiry papers.

Analysis

The position can be analysed in a few simple steps.

First, HMRC had already opened or was conducting an SDLT enquiry and had asked for further information by a specified date.

Second, the taxpayer asked for more time before the original deadline expired. That is important. A request made before the deadline is generally far easier to deal with than one made after the date has already passed.

Third, the request was reasonable. The taxpayer explained that further enquiries were being made and supporting documentation was still being gathered. That is a sensible basis for asking for an extension, especially in SDLT matters where valuation evidence, construction evidence, title papers, planning documents, or factual statements may need to be assembled.

Fourth, HMRC expressly agreed. The confirmation gave a clear new deadline. Once that happened, the practical effect was that the taxpayer had until that revised date to provide the response requested.

Fifth, the taxpayer should still respond as fully as possible within the extended period. An extension is not the end of the matter. It simply gives more time to answer properly. If the taxpayer still cannot provide everything by the new deadline, it is sensible to send what is available, explain what remains outstanding, and if necessary seek a further extension before the revised date expires.

Finally, it is good practice to preserve the email or letter confirming the extension. If there is ever any dispute about lateness or cooperation, that record may be important.

Outcome

Where HMRC confirms that an extension is granted and states a new response deadline, the taxpayer can generally proceed on the basis that the enquiry timetable has been extended to that date.

The practical conclusion is that the taxpayer should now focus on producing a complete, accurate, and well-supported response by the revised deadline. HMRC’s agreement does not resolve the underlying SDLT issue, but it does give extra time to deal with it properly.

Practical Steps

If you are in a similar position, the sensible next steps are:

• check the original HMRC letter and note the existing deadline;
• if more time is needed, ask for the extension before the deadline expires;
• give a brief but clear reason, such as needing to gather documents or obtain advice;
• ask for a specific new date rather than making an open-ended request;
• keep HMRC’s written confirmation of any extension;
• use the extra time to prepare a structured response with supporting evidence;
• if all material cannot be obtained in time, send a partial response and explain what is still being obtained;
• if necessary, request any further extension before the revised deadline passes.

It is also wise to organise the response by reference to each question raised by HMRC. That usually makes the enquiry easier to manage and reduces the risk of follow-up requests caused by gaps or unclear explanations.

Conclusion

Yes, HMRC can agree more time to answer an SDLT enquiry, and where HMRC confirms the extension in writing with a new date, the taxpayer should treat that revised date as the operative deadline. The important next step is to use the extra time well and provide a complete, evidenced response.

Legal References Used

• Finance Act 2003, Schedule 10

This page was last updated on 22 March 2026.

See all questions and answers categorized in this sitemap. Or use Google site search below.