Compliance under SDLT

Q. What information powers do HMRC have under SDLT?

  • We will normally ask for information by letter but if we do not receive the information requested, we have powers, similar to the existing powers for income tax, to require you to provide information. For further information on this subject please view our 'Compliance under SDLT' page.

Q. How do I appeal against decisions made by HMRC?

  • You can at any stage ask why we are continuing our enquiries if you believe we have all the information and explanations we need to check your land transaction return.
  • You can ask independent Appeal Commissioners to consider whether the enquiry should be closed if you think that:
    • Our enquiries are not relevant or unreasonable
    • We are prolonging the enquiry unnecessarily

Q. What are the penalties if I submit my form late / make an underpayment / don't submit all the necessary information to HMRC?

  • Land transaction returns are due within 30 days of the effective date of the transaction (the filing date). The effective date is normally the completion date of the transaction, whether or not a document shows this. However, if a contract is substantially performed before completion, the date that 'substantial performance' takes place is the effective date.

    If we do not receive the land transaction return or any payment of the SDLT due within 30 days of the effective filing date but within three months of the 30-day limit, the purchaser will be automatically charged a £100 penalty. In all other cases, the purchaser will automatically receive a £200 penalty. The amount of the penalty will rise if the return is submitted after this period. If the purchaser pays late, they will also receive an interest charge. The purchaser or the agent acting on their behalf may appeal against the imposition of a penalty where they believe they have 'reasonable grounds'. More information is contained within our leaflet SD7 - Penalties for late land transaction returns (PDF 146K).

  • If your return is incorrect because you have tried to mislead us, or because you have not taken reasonable care to fill it in correctly, then you may be liable to a penalty
  • If we have given you formal notice requiring you to provide information, and you have failed to do so, then you may be liable to a penalty.
  • Please view the SDLT Manual.

Q. What does the enquiry process look like?

If your Return is selected for enquiry we will send you a letter telling you this, and asking for information. Once we have all the information we need we will write and tell you our conclusions, and whether we think your Return needs to be amended. Please view the SDLT Manual.