Stamp duty land tax reduced timescale to lodge a return

From 1 March 2019 the timescale for submitting a Stamp Duty Land Tax (‘SDLT’) return and making the necessary payments to HMRC has been halved from 30 to 14 days.

The 14 day deadline has an automatic fixed penalty charge for Stamp Duty Land Tax returns filed late at HMRC. There will be a £100 penalty charge if a return is filed up to three months after the filing date and a £200 penalty charge if a return is filed more than three months after the filing date.

SDLT

SDLT is the tax imposed by the Government on the transfer of land or the grant of a lease in England and Northern Ireland with a value over a certain threshold.

Legislation published

The previous deadline for submitting an SDLT return and paying any SDLT monies that are due was 30 days from the effective date of the transaction, being either the date of completion or the date that occupation of the property was taken.

In the Autumn Budget 2017, HMRC confirmed that a new 14 day filing and payment window would apply and the legislation to put this change in place has recently been published and the new time limit of 14 days is now in place.

Improved efficiency

HMRC have commented that the majority of SDLT returns are already filed within 14 days of the transaction and that this reduced timescale will improve the efficiency of the SDLT system. Improvements are also being made to the SDLT return process.

There is further information in the Government’s policy paper: Changes to the Stamp Duty Land Tax filing and payment time limits

Interest payable

Those involved in property transactions where SDLT is applicable should ensure they are aware of and adhere to this new deadline as, if an SDLT return is not filed and the SDLT monies are not paid to HMRC within the 14-day timescale, interest will be payable from the day after the deadline until the date the SDLT monies are actually paid.

Our commercial and residential property experts are very experienced in the lodging and payment of Stamp Duty Land Tax on behalf of our clients. For advice please call Hatch Brenner at 01603 214 220 or email [email protected]

Stamp Duty Land Tax