HMRC has published manual guidance on the Stamp Duty Land Tax land transaction return, setting out the form, the 14-day deadline, payment, supplementary pages and penalties for buyers and tenants.
Key facts
- Who: Purchasers (including tenants) in notifiable property transactions
- From: Already in force
- Source: SDLTM50100 – Procedure: Duty to deliver a land transaction return FA03/S76: The form
For notifiable transactions with an effective date on or after 1 March 2019, a purchaser must make a Stamp Duty Land Tax (SDLT) return and pay the tax due before the end of 14 days beginning the day after the effective date of the transaction. The same limit applies to transactions with an effective date before 1 March 2019 that become notifiable on or after that date.
For notifiable transactions with an effective date on or before 28 February 2019, the earlier rule applied: the return had to reach HM Revenue & Customs (HMRC) within 30 days of the effective date. HMRC gives an example of the current rule: a transaction with an effective date of 1 March 2019 must be notified by 15 March 2019.
The return (form SDLT1 or its electronic equivalent) must include a self-assessment of the liability and be accompanied by payment of the SDLT due. It must be signed by the purchaser or purchasers. It must be in the prescribed form, contain the prescribed information and include a declaration by the purchaser that, to the best of their knowledge, it is correct and complete.
For paper returns, supplementary forms must be completed as well in certain cases:
- SDLT2 if there are more than two purchasers or vendors (purchaser includes tenant, and vendor includes landlord);
- SDLT3 where more than one piece of land or property is being sold;
- SDLT4 for leases and certain commercial transactions.
Each land transaction return carries its own pre-printed reference number, so it cannot be photocopied and used for another transaction. The supplementary pages may not be copied either. Forms and guidance notes can be ordered from the HMRC Orderline on 0300 200 3510. A completed paper return goes with payment to BT Stamp Duty Land Tax, HM Revenue and Customs, BX9 1LT.
Returns can instead be submitted through the Stamp Taxes Online service. It provides an electronic SDLT5 certificate shortly after a successful submission. That certificate should be sent, with the necessary documents, to the appropriate land register for registration.
A return counts as delivered only if it meets the legal requirements and is received by HMRC by the filing date.
Interest is chargeable on unpaid tax from the relevant date until payment. Failing to deliver a return by the filing date results in a fixed-rate penalty, and could also lead to tax-geared penalties.
What this means for buyers and tenants
The clock runs from the day after the effective date of the transaction, so the deadline is short. Check the effective date and the filing date early, and make sure the tax is ready to pay when the return goes in.
Check that the return is signed, complete and in the correct form, and whether supplementary pages are needed. Paper forms cannot be copied. If a deadline may already have passed, or you are unsure whether a transaction is notifiable, get advice promptly, as interest and penalties can apply.
Sources
- SDLTM50100 – Procedure: Duty to deliver a land transaction return FA03/S76: The form, HMRC Stamp Duty Land Tax Manual