Submitting the Stamp Duty Land Tax Return Form

When you buy property or land you will need to notify HM Revenue & Customs (HMRC) by completing a Stamp Duty Land Tax Return (or Land Transaction Return) and pay any stamp duty land tax. This happens at the end of the conveyancing process after completion has taken place.

The majority of home buyers will have their conveyancing solicitor or licensed conveyancer handle the work so they can enjoy moving into their new home. However, you can choose to submit the SDLT Return yourself.

 

UK Stamp Duty Rates

When does Stamp Duty have to be paid?

Who is legally responsible for paying Stamp Duty and submitting the form?

How can I complete the SDLT Return Form?

How do I pay Stamp Duty Land Tax?

Where can I find out further information?

In-Deed Conveyancing

 

UK Stamp Duty Rates

Please see the below table for the current stamp duty thresholds.

Purchase price SDLT Rate
Up to £125,000 0%
Over £125,000 to £250,000 1%
Over £250,000 to £500,000 3%
Over £500,000 to £1 million 4%
Over £1 million to £2 million 5%
Over £2 million 7%
Over £2 million (purchased by certain persons including corporate bodies) 15%

Are you aware that stamp duty is not accumulative? For example, if you have an offer accepted of £251,000 you will have to pay £7,530 in stamp duty land tax. However, if you have an offer accepted of £250,000 you will only pay £2,500. Being aware of the stamp duty thresholds could potentially save you thousands of pounds!

When does Stamp Duty have to be paid?

You need to complete a stamp duty return and pay any stamp duty tax within 30 days of completion. If you do not meet this deadline you may have to pay a penalty and interest.

Who is legally responsible for paying Stamp Duty and submitting the form?

You are legally responsible for notifying the HMRC and paying any stamp duty. This is the case even if you have a conveyancing lawyer pay the stamp duty and submit the stamp duty return form on your behalf.

How can I complete the SDLT Return Form?

You can either fill the SDLT Return online or complete a paper copy. HMRC recommend that filling in the form online is the easiest way, but please note it may take 7 days to register (if you are not already registered) so don’t leave returning the form to the last minute!

How do I pay Stamp Duty Land Tax?

The HMRC recommend you pay your stamp duty land tax online or over the phone, rather than posting a cheque.

You can pay in the following ways:

  • BillPay – A service provided by Santander and takes three working days to reach the HMRC. Please note credit cards incur an extra charge of 1.4%.
  • Faster Payments – Sends payments on the same or next day. Contact your bank to know the services available to you.
  • Internet Banking – Select “HM Revenue & Customs” from your bank’s beneficiary list (or payee list) or use HMRC’s bank account details.
  • Telephone Banking – Call your bank and provide HMRC’s bank details
  • Bacs Direct Credit
  • CHAPS – Payment will reach HMRC on the same day. Your bank may charge you for this service.
  • Bank Giro
  • At the Post Office – take your HMRC payslip, make cheques payable to “Post Office Ltd”
  • By Post – Make your cheque payable to “HM Revenue & Customs only” and write your UTRN on the front of the cheque

When paying your stamp duty land tax you will need to know the following information:

  • HMRC’s bank account details
  • Your personal UTRN (Unique Transaction Reference Number) – You can find this on your Stamp Duty Return Form submission receipt or on your paper SDLT Return. The reference number is made up of 11 characters.

Where can I find out further information?

You can find out more information about paying Stamp Duty Land Tax and returning the Stamp Duty Return Form by visiting the HMRC website – www.hmrc.gov.uk

In-Deed Conveyancing

At In-Deed we charge £50 if your conveyancing lawyer fills in the stamp duty return form and pays your stamp duty on your behalf. If you would like to do this yourself then please notify you lawyer as early as possible. Unless notified, your lawyer will carry out the work as a matter of course.

 

Related Conveyancing Articles:

Stamp Duty Mitigation

First Time Buyer Stamp Duty (SDLT) Relief

Changes to Stamp Duty Land Tax (SDLT) | Properties over £2m taxed 7%

Government Cuts Down on Stamp Duty Avoidance

What is Stamp Duty Land Tax (SDLT)?


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