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Penalties for Late SDLT Returns
When you buy a property in England or Northern Ireland, you must file your Stamp Duty Land Tax (SDLT) return on time — even if there's no tax to pay. Miss the deadline and you'll face automatic penalties that increase the longer you delay. Here's what you need to know about late filing penalties,...
When you buy a property in England or Northern Ireland, you must file your Stamp Duty Land Tax (SDLT) return on time — even if there's no tax to pay. Miss the deadline and you'll face automatic penalties that increase the longer you delay. Here's what you need to know about late filing penalties, when they apply, and what you can do if you've missed the deadline.
When you must file your SDLT return
You must file your SDLT return within 14 days of completing your property purchase (known as the 'effective date' of the transaction). This deadline applies whether you owe SDLT or not — some transactions are exempt from the tax itself, but you still need to submit the return.
Note: Different taxes apply if you bought property in Scotland (Land and Buildings Transaction Tax from 1 April 2015) or Wales (Land Transaction Tax from 1 April 2018).
Penalty amounts for late filing
If you file your SDLT return late, HMRC will charge you an automatic penalty. The penalty amount depends on how late your return is:
- Up to 3 months late: £100
- More than 3 months late: £200
These penalties apply even if you have no SDLT to pay. HMRC issues the penalty automatically — you don't receive a warning first.
If you continue to delay filing beyond 3 months, the penalty increases, and you may also face additional daily penalties or percentage-based charges on any unpaid tax.
What happens if you don't pay the penalty
You must pay the penalty by the date shown on the penalty notice, even if you plan to appeal against it. If you don't pay and your appeal is unsuccessful, HMRC will charge you interest on the late payment of the penalty.
If your appeal succeeds, HMRC will refund the penalty with interest.
Can you appeal a late filing penalty?
Yes, you can appeal against a late filing penalty if you have a 'reasonable excuse' for missing the deadline. A reasonable excuse is something unexpected or outside your control that prevented you from filing the return on time.
Crucially, HMRC will only accept your excuse if what happened meant you couldn't file the return yourself and you couldn't arrange for someone else to file it for you.
What counts as a reasonable excuse
HMRC may accept your appeal if:
- You posted your SDLT return in good time, but it was lost or delayed in the post (for example, due to floods or industrial action)
- Your adviser was seriously ill and couldn't manage their business or personal affairs (such as after a heart attack or stroke)
- Your adviser died
To succeed with your appeal, you must show that you did everything possible to file your return as soon as the problem was resolved.
What doesn't count as a reasonable excuse
HMRC won't accept circumstances that didn't prevent you from dealing with your other affairs. The following are not usually accepted as reasonable excuses:
- You found the return too difficult to complete
- Pressure of work prevented you from dealing with the return
- Your adviser was waiting for you to pay the SDLT, or another adviser was arranging payment
- You were waiting for a property valuation (you should use your best estimate and amend the return later when you have the final figure)
- The seller's adviser caused a delay
- You were abroad and couldn't sign the return (you should arrange a power of attorney if you plan to be away)
How to appeal against a penalty
You must appeal within 30 days of the date shown on the penalty notice. You can appeal by:
- Writing a letter explaining your reasonable excuse, or
- Completing form SDLT46 (Notice of Appeal Against a Penalty)
HMRC provides guidance notes to help you complete your appeal. Send your appeal to:
HM Revenue and Customs
BT - Stamp Duty Land Tax
BX9 1HD
United Kingdom
HMRC settles most appeals at this stage by reaching an agreement with the taxpayer.
If HMRC rejects your appeal
If HMRC doesn't accept your appeal and you can't reach an agreement, you have the right to take your case to an independent tax tribunal. The tribunal will review your case and make a final decision.
How to avoid late filing penalties
The best way to avoid penalties is to:
- Mark the filing deadline in your calendar (14 days after completion)
- Instruct your solicitor or conveyancer to file the return on your behalf as part of the purchase process
- If filing yourself, start the process well before the deadline in case you encounter technical issues
- If you're waiting for information (such as a valuation), use your best estimate and file on time — you can amend the return later
Remember: you cannot avoid the penalty simply because you didn't know about the filing requirement or found the process difficult. HMRC expects you to meet the deadline or arrange for a professional to help you.
Sources
This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.
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