Stamp Duty Land Tax (SDLT)

When you buy a house, a flat or lease or sell other assets, you must inform inform HMRC. You must especially inform within 30 days of the effective date of transaction HMRC about most UK land and property transactions on an SDLT return. This is true even if you do not have to pay any tax on the transaction.

You must also pay any SDLT due within 30 days of the effective date of transaction.

stamp dutyHow to calculated the effective date

The effective date is usually the date the transfer is completed, but it can be the date the contract is ‘substantially performed’ if this is before completion. ‘Substantial performance’ is when one of the following happens:

  • most of the buying price is paid – normally 90% and payment can be in cash or something else of economic value
  • the buyer is entitled to possession of the property
  • the first payment of rent is made

You’ll pay a fixed penalty if you file your return late.

Who must send a return

You must tell HMRC about land and property transactions on an SDLT return. Some land and property transactions are exempt from SDLT and don’t need to be put on an SDLT return. These include:

  • transactions where no money or other payment changes hands
  • property left to you in a will
  • property transferred because of divorce or civil partnership dissolution.

If you do not have a solicitor or legal conveyancer to help, we can act for you. But it is your responsibility to inform HMRC and to pay any stamp duty you owe. You have to tell us the following: the effective date of the transaction and the amount due. Of course we need to know the property details.

Once we submit on your behalf the return, we will be issued with an SDLT5 certificate with a Unique Transaction Reference Number (UTRN). Print this and post it to the Land Registry with your application for registration.

Contact us if you need more help completing or submitting your SDLT. Our telephone number is 02071836547 or complete the form below.

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If you want help submitting your tax return, please contact our property lawyers on 0207 183 6547

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