SDLTM86120 - Compliance: Penalties

Legislation: Failure to submit a land transaction return FA03/SCH10/PARA3 & FA03/SCH10/PARA4

Flat-rate penalties FA03/SCH10/PARA3

A purchaser who fails to deliver the land transaction return by the filing date, see SDLTM80060, is liable to

• a flat-rate penalty of £100 if the land transaction return is delivered within three months after the filing date
• £200 in any other case

This flat-rate penalty is charged whether or not the transaction attracts stamp duty land tax.

Tax-geared penalties FA03/SCH10/PARA4

A purchaser who is required to deliver a land transaction return in respect of a chargeable transaction and fails to do so within twelve months of the filing date is liable to a tax-geared penalty under this paragraph.

The penalty is an amount not exceeding the amount of tax chargeable in respect of the transaction.

This is in addition to any flat-rate penalty under FA03/SCH10/PARA3.

These penalties are based on the liability to tax which would have been shown in the land transaction return if a proper return had been delivered on the filing date.

Any such penalties will normally be brought into a contract settlement and will be subject to abatement in the normal way, see SDLTM86580+.