Vale & West Chartered Accountants Blog

Time limit to pay Stamp Duty Land Tax reduced from March

The time limit to file a Stamp Duty Land Tax (SDLT) return and pay the tax due will be reduced from 30 days to 14 days from next month.

The new time limit will apply to transactions with an effective date on or after 1 March 2019.

The Government said shortening the time limit will not change liabilities for the purchaser, but will improve the efficiency of the SDLT system. According to official figures, the majority of returns are already filed within 14 days of the transaction.

However, the Law Society said buyers of commercial and residential property need to be aware of the change, as the obligation primarily falls on the taxpayer.

While this likely will not affect residential transactions, as the majority of SDLT returns are prepared in advance, there could be implications for commercial transactions.

More often than not, SDLT returns are treated as a ‘post-completion’ matter. Due to the changes to the time limit, however, it has been suggested that returns should be likewise prepared and authorised prior to completion.

Commenting on the changes, HM Revenue & Customs (HMRC) said: “The impact on admin burdens is expected to be negligible. One-off costs include familiarisation with the new time limits. On-going costs may include amending systems and/or processes to ensure returns are filed and payments are made within the 14 day deadline. However, many businesses already file and pay within 14 days.

“Furthermore, the improvements to the SDLT return will help these businesses comply, particularly as, where complex purchases involving leases, less information will be required.”

For more advice on Stamp Duty Land Tax, please get in touch.

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