How to Complete Your SDLT Return

Introduction

When you buy property or land in the UK, you usually need to file a Stamp Duty Land Tax (SDLT) return with HMRC within 14 days of completion. This guide explains what information you need to gather, when to use paper versus online returns, and how to complete the main SDLT forms correctly.

Do You Need to File a Paper or Online Return?

If you have a solicitor, agent, or legal conveyancer acting for you, they can file your SDLT return online. This is the quickest and most straightforward method.

You must use a paper return if you're not represented by a solicitor, agent, or legal conveyancer and are handling the transaction yourself.

Using SDLT Software

Commercial software is available to file SDLT returns over the internet. These are third-party products that connect to HMRC's systems.

HMRC does not recommend or endorse any particular software provider over another. You'll need to contact the software supplier directly if you have any problems or questions about their product, as HMRC cannot provide support for commercial software.

HMRC is not responsible for any loss, damage, cost, or expense arising from the use of these software products, nor for the accuracy of supplier contact details or the reliability of their websites.

The Main SDLT1 Return

The SDLT1 is the main return form for reporting your property purchase to HMRC. This form collects key information about:

• The property address and type
• The buyer and seller details
• The purchase price and payment structure
• The amount of SDLT due
• Whether any reliefs or exemptions apply

When completing the SDLT1, you'll answer a series of questions about the transaction. Pay particular attention to:

Question 1 asks you to enter a code for the property type:

• Code 01: residential property
• Code 02: mixed use property (part residential, part commercial)
• Code 03: non-residential property (commercial or business property)

Question 2 (if you entered code 01) asks about the nature of the residential transaction.

Question 26 asks whether you're buying more than one property in the transaction.

Your answers to these questions determine whether you need to complete additional forms.

When You Need to Complete Form SDLT4

The SDLT4 is a supplementary form that provides additional detail about more complex transactions. You must complete an SDLT4 alongside your SDLT1 return if any of the following apply:

• The buyer is a company
• You entered code 02 (mixed use property) or code 03 (non-residential property) at question 1 of the SDLT1
• You entered code 01 at question 1, used 'A' or 'L' at question 2, and stated there is more than one property at question 26
• The sale includes a business (not just property)
• Any part of the purchase price other than rent is contingent (depends on future events) or uncertain
• The transaction includes mineral rights or minerals
• You applied for a ruling under CAP1 or non-statutory business clearance relating to the transaction
• You are applying for deferment (to pay the SDLT later)

The SDLT4 must be submitted together with your completed paper SDLT1 return.

Information You Need to Gather

Before you start completing your return, make sure you have:

• The full property address and title details
• The completion date of your purchase
• Details of all buyers (names, addresses, National Insurance numbers or company registration numbers)
• Details of the seller
• The full purchase price, including how it's structured (cash payment, mortgage, other consideration)
• Details of any rent if the property is leasehold
• Information about any reliefs you're claiming
• Your solicitor's details (if you have one)

Common Reasons for Rejection

HMRC may reject your return if information is missing, incorrect, or inconsistent. Take care to:

• Enter all required information accurately
• Ensure dates are in the correct format
• Check calculations, particularly the SDLT due
• Include all supplementary forms required for your transaction type
• Sign and date the declaration

If your return is rejected, HMRC will explain what needs to be corrected. You'll need to fix the issues and resubmit.

Amending a Return or Applying for a Refund

If you discover an error after filing, or if circumstances change that affect the SDLT you owe, you can amend your return or apply for a refund. The process for doing this is separate from the initial filing.

Penalties for Late Filing

You must file your SDLT return and pay any tax due within 14 days of completion. Late filing results in penalties, so make sure you don't miss this deadline.

Sources

• How to complete form SDLT4 for Stamp Duty Land Tax
• How to complete your Stamp Duty Land Tax SDLT1 paper return
• Find software suppliers for Stamp Duty Land Tax

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.