What is SDLT?
Stamp Duty Land Tax is charged on land and property transactions in England and Northern Ireland. The buyer is responsible for the return and the tax, although in practice the return is almost always filed by their solicitor, conveyancer or accountant.
When is a return needed?
Most transactions are notifiable: a return is required even if no tax is due — for example, a first-time buyer purchase below the relief threshold. Common cases that don't need a return include:
- freehold purchases where the chargeable consideration is under £40,000;
- certain transfers for no chargeable consideration, such as gifts with no mortgage assumed;
- some transfers on divorce or dissolution of a civil partnership.
If you are unsure, file. A return with nothing to pay costs nothing, but failing to file a notifiable return brings a penalty.
The 14-day deadline
SDLT deadlines and late-filing penalties →
The return must be filed and the tax paid within 14 days of the effective date. The effective date is normally completion, but it can be earlier if the contract is "substantially performed" — for example, where the buyer takes possession before completing.
Bank transfers by BACS take three working days, so unpaid tax needs attention by day 11. FileSDLTonline flags these cases on the dashboard.
The SDLT forms
| Form | What it is for |
|---|---|
| SDLT1 | The land transaction return itself. |
| SDLT2 | Additional buyers or sellers — needed for each party beyond the first two. |
| SDLT3 | Additional properties in the same transaction. |
| SDLT4 | Further details for commercial property, company buyers, complex leases, contingent consideration and post-transaction rulings. |
| SDLT5 | HMRC's certificate confirming the return has been made. HM Land Registry needs it to register the transaction. |
| SDLT46 | Notice of appeal against a late-filing penalty. |
Filing online
How to file an SDLT return, step by step → · The SDLT5 certificate →
Online returns are filed through HMRC's Stamp Taxes Online service. Your firm needs a Government Gateway account enrolled for Stamp Taxes Online and a 10-digit STORN (Stamp Taxes Online Reference Number). HMRC only accepts online returns from agents and organisations — a buyer acting without a representative must file the paper SDLT1.
When HMRC accepts a return you receive a UTRN (Unique Transaction Reference Number) to quote when paying, and the SDLT5 certificate details. See the getting started guide for enrolment.
Penalties and interest
| Situation | Penalty |
|---|---|
| Return filed up to 3 months late | £100 (automatic) |
| Return filed more than 3 months late | £200 (automatic) |
| Return more than 12 months late | A tax-geared penalty of up to the amount of tax due may also apply |
| Tax paid late | Interest from day 15 until payment |
An appeal against a late-filing penalty is made on form SDLT46 within 30 days of the penalty notice.
Amending a return
A return can be amended within 12 months of the filing date, by writing to HMRC with the UTRN and details of the change. FileSDLTonline gives you an amendment letter template on every filed case. Claims for a refund of the higher rates, once a previous main residence is sold, have their own time limits.
Scotland and Wales
SDLT does not apply in Scotland or Wales. Land in Scotland is subject to Land and Buildings Transaction Tax, administered by Revenue Scotland. Land in Wales has been subject to Land Transaction Tax, administered by the Welsh Revenue Authority, since 1 April 2018. FileSDLTonline blocks Scottish and Welsh postcodes at the property step. Our stamp duty calculator works out LTT and LBTT too.
This guide is a summary for professionals and is not tax advice. Always check HMRC's current guidance for the transaction in front of you.