Completing the SDLT return: introduction

When you buy or transfer land or property, or take on a lease, you usually need to notify HM Revenue & Customs (HMRC). You do this by completing a Stamp Duty Land Tax (SDLT) return, also known as a Land Transaction Return. The simplest and fastest method is to complete the return online, but you can complete a paper form instead if you need to. If any SDLT is due, you send the payment at the same time.

When you complete the return you'll receive a certificate (SDLT5), which you will need in order to register the property with the Land Registry or Registers of Scotland, or to request title documents. If you file online you’ll receive an electronic certificate that can be printed off.

On this page:

Deadline for completing the SDLT return

When you purchase or transfer land or property you need to complete a SDLT return and pay any tax due within 30 days of the ‘effective date’ of the transaction. Most people use a solicitor or legal conveyancer to act for them, but legally it's your responsibility to notify HMRC and pay any SDLT due.

What is the effective date?

The effective date is usually the date the transfer is completed, but can also be the date the contract is ‘substantially performed’ if this is before completion.

Substantial performance occurs when one of the following events takes place:

  • the majority of the purchase price is paid - normally 90 per cent (payment can be in the form of cash or something else of economic value)
  • the purchaser is entitled to possession of the property
  • the first payment of rent is made

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Filing the SDLT return online

The quickest and easiest way to file your SDLT return is online. Most returns are filed this way and it usually takes about ten minutes. Built-in validation ensures that you only answer questions relevant to your transaction, which greatly reduces the chances of making a mistake.

When you file online you can print an electronic SDLT5 certificate, usually within a few minutes of submitting the return. You can then save a copy of the return and the certificate on your computer for future reference.

Different options for filing online

You can file online using the HMRC’s Stamp Taxes Online Service, or there’s a range of commercial software providers you can choose from depending on your needs.

Read about the benefits of filing online and the options available

Find out what you need to do to register to file SDLT online

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Completing a paper SDLT return

If you prefer to file a paper return you complete an SDLT1 form. This is more time-consuming than filing online and has a number of disadvantages:

  • unlike the intelligent online form you’ll have to work through the whole form, and the supplementary forms SDLT2 – SDLT4, to see which questions apply to your transaction
  • if you make a mistake HMRC will write to you and your return will be held open until they receive your reply - this may result in penalties for late filing and interest charged on late payment of any tax due
  • you have to wait to receive the SDLT5 certificate in the post, which may result in delays notifying the land registry

Read more about completing a paper return

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