An SDLT return tells HMRC about a land or property purchase in England or Northern Ireland and works out the Stamp Duty Land Tax due. It must be filed within 14 days of completion, usually online through HMRC's Stamp Taxes Online service or approved software.
Who files the SDLT return?
The buyer is legally responsible, but in practice the solicitor or conveyancer handling the purchase files it as their agent. HMRC's online service is for agents and organisations; individuals without a solicitor usually file on paper.
When is an SDLT return needed?
- Most purchases of £40,000 or more — even if no tax is due, for example a first-time buyer under £300,000.
- New leases over seven years with a premium of £40,000 or more or annual rent of £1,000 or more, and shorter leases where tax is due.
- Purchases where a relief is claimed.
How do you file an SDLT return online?
- Enrol for Stamp Taxes Online with a Government Gateway account. The firm receives a STORN (Stamp Taxes Online Reference Number) and an activation code by post. Getting started explains this in detail.
- Collect the details: the property, the buyers and sellers (with dates of birth and National Insurance numbers for individual buyers), the price, the effective date and any reliefs.
- Work out the tax, including any higher rates, non-resident surcharge or reliefs.
- Submit the return online. HMRC checks it against its business rules and either accepts or rejects it.
- Pay the tax using the UTRN as the payment reference.
- Keep the SDLT5 certificate and send it to HM Land Registry with the registration.
The forms
| Form | Used for |
|---|---|
| SDLT1 | The main return, for every transaction |
| SDLT2 | Additional buyers or sellers (more than two) |
| SDLT3 | Additional properties |
| SDLT4 | Complex transactions: companies, leases, mixed use |
| SDLT5 | The certificate HMRC issues once the return is accepted |
Paying the tax
Tax is paid to HMRC by bank transfer, online card payment or cheque, quoting the 11-character UTRN. It must arrive by the 14-day deadline.
After filing
When an online return is accepted, the SDLT5 certificate is available straight away. HMRC can open an enquiry into a return, normally within 9 months of the filing date.
For firms: FileSDLTonline guides you through the SDLT1 to SDLT4 questions, checks the return against 70+ HMRC rules before it is sent, files it and stores the SDLT5. See the features.