The time limit for filing a Stamp Duty Land Tax return and paying the tax due has been reduced from 30 days to 14 days.

What is SDLT?

You will have to pay Stamp Duty Land Tax if you buy a residential property over £125,000 and non-residential property over £150,000. The tax can arise when:

  • Purchasing a new lease or property
  • Transferring a lease or the freehold of a property
  • Taking a new lease

What land transactions are caught?

The 14 day limit applies to all land transactions:

  • With an effective date on or after 1 March 2019
  • With an effective date before 1 March 2019 but which were not notifiable to HMRC until 1 March 2019 or later

What if my payment is late?

You will receive a £100 fine if the Stamp Duty Land Tax return is not submitted within 14 days after completion, rising to £200 after three months, plus a possible percentage tax-related penalty if the return is more than a year late. Late payment will also give rise to an interest charge.

Three tips for filing your stamp duty return on time

1. Consider Stamp Duty Land Tax in advance of completion and seek legal advice early if the matter is particularly complicated.

2. Ensure your return gets approved in advance by a suitable person in your business and in time for your solicitor to submit the return within the deadline.

3. Make sure that you hold sufficient funds to meet the relevant charges in advance of completion. If applicable, transfer these funds to your solicitor as soon as possible after completion so that they may pay Stamp Duty Land Tax on your behalf within the required period.