How to Pay Stamp Duty Land Tax

When you buy or transfer property or land in England or Northern Ireland, you must tell HMRC by submitting a Stamp Duty Land Tax (SDLT) return and pay any tax due within 14 days. This applies even if no tax is owed. Most people use a solicitor or conveyancer to handle this, but if you're acting on...

When you must pay

You must submit your SDLT return and pay any tax due within 14 days of the 'effective date' of the transaction. This is usually the date the transaction completes, but it can also be:

The date the purchaser is entitled to take possession of the property
The date the first rent payment is due
The date of substantial completion (when at least 90% of the payment is made)

If the 14-day deadline falls on a weekend or bank holiday, your payment must reach HMRC by the end of the previous working day.

Missing the deadline may result in penalties, interest charges, or both.

What you need before paying

You'll need your unique transaction reference number (UTRN). This is an 11-character reference made up of 9 numbers and 2 letters (for example, 123456789MC).

You'll find this reference on:

Your paper SDLT1 return
Your electronic SDLT5 certificate (issued after you submit your return online)

Using an incorrect reference number will delay your payment being allocated correctly and you'll receive a payment reminder from HMRC.

How to pay online

The quickest way to pay is online. You can pay using:

Your online or mobile banking account (by approving a payment)
A debit card
A corporate credit card

You cannot pay with a personal credit card.

Paying through your bank account

Select the 'pay by bank account' option and you'll be directed to sign in to your online or mobile banking to approve the payment. You'll need your online banking details to hand.

The payment is usually instant but can take up to 2 hours to show in your bank account.

Paying by debit or corporate credit card

You can make a full payment using a debit or corporate credit card. There is a non-refundable fee if you use a corporate credit or debit card.

Your payment is accepted on the date you make it, not the date it reaches HMRC's account. This includes weekends and bank holidays.

Make sure the details you enter match those held by your bank or card provider. The billing address must match the one your card is registered with.

Paying by bank transfer

You can pay by CHAPS (Clearing House Automated Payment System), Faster Payments, or Bacs (Bankers Automated Clearing System).

Processing times:

CHAPS or Faster Payments: same or next working day
Bacs: allow 3 working days for the payment to reach HMRC

Make separate payments for each unique transaction reference. If you need to make a single payment covering multiple transactions, you must send an online CHAPS enquiry form to HMRC.

Check your bank's processing times and maximum transaction limits before you pay.

Bank details for UK accounts

Sort code: 08 32 10
Account number: 12001020
Account name: HMRC Shipley

Bank details for overseas accounts

Account number (IBAN): GB03 BARC 2011 4783 9776 92
Business Identifier Code (BIC): BARCGB22
Account name: HMRC Shipley

You must make all payments in pound sterling. Your bank may charge you if you use any other currency.

If your bank requires a banking address, use:

Barclays Bank Plc

1 Churchill Place

London

United Kingdom

E14 5HP

Paying by cheque

Allow 3 working days for your cheque to reach HMRC.

Make your cheque payable to 'HM Revenue and Customs only' and write your unique transaction reference number on the back. Do not fold the cheque or attach it to other papers.

If you're sending a cheque for more than one transaction, include a list of all the references with each payment amount. You can include a letter requesting a receipt.

If you filed a paper return

Complete the payslip from the back of your SDLT1 return and send it with your cheque to:

BT Stamp Duty Land Tax

HM Revenue and Customs

BX9 1LT

If you filed an electronic return

Send your cheque (with a payslip or quoting the unique transaction reference) to:

HM Revenue and Customs

Direct

BX5 5BD

Who submits the return and makes payment

It's your responsibility to tell HMRC and pay any SDLT you owe. Most people use a solicitor or legal conveyancer to act on their behalf.

Solicitors and conveyancers can submit your return online and pay any tax due once HMRC has their authority on record and knows the effective date of the transaction.

If you're not represented by a solicitor or legal conveyancer, you must use the paper SDLT1 return.

Some transactions don't need a return, including:

Transactions where no money or other payment changed hands
Property left to you in a will
Property transferred because of divorce or civil partnership dissolution

Important notes for Scotland and Wales

You do not pay SDLT if you buy a property in Scotland or Wales:

Scotland (from 1 April 2015): you pay Land and Buildings Transaction Tax instead
Wales (from 1 April 2018): you pay Land Transaction Tax instead

SDLT should not be confused with Stamp Duty on shares or Stamp Duty Reserve Tax, which apply to share purchases.

Sources

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