Stamp Duty late payment penalties
New penalties for late payment of Stamp Duty on share or land transactions came into effect on 1 October 2014. In general, documents must be stamped and any Stamp Duty paid within 30 days of when the documents were signed and dated (‘executed’). For example, for the purchase of property, Stamp Duty Land Tax (SDLT) is due within 30 days of completion. There are different time limits if the documents were executed abroad.
The following penalty amounts apply to all documents submitted late for stamping on or after 1 October 2014:
- Documents late by up to 12 months – 10% of the duty, capped at £300
- Documents late by 12 to 24 months – 20% of the duty
- Documents late by more than 24 months – 30% of the duty
There will also be late payment interest due on the payment from the day after the monies should have been paid until the date when payment is made. HMRC will only cancel a penalty if there is a reasonable excuse. HMRC provides a useful summary of when a penalty may and may not be cancelled.