If you buy property or land in England, you usually have to file a Stamp Duty Land Tax (SDLT) return and pay any tax due within 14 days of the transaction. Miss that deadline and HMRC can charge penalties and interest, even if no tax was actually owed. This guide explains how late-filing penalties work and when a "reasonable excuse" may help.
The 14-day deadline
For most land transactions in England (and Northern Ireland; Scotland and Wales have their own taxes), you must submit an SDLT return and pay any tax due within 14 days of the effective date of the transaction (usually completion). The rules are in the Finance Act 2003 (with penalties in Schedule 10).
A common misconception is that no return is needed if no tax is payable, but a return is often still required even where the tax is nil or relief applies.
How late-filing penalties are calculated
Penalties for filing the return late escalate with the delay:
- Up to 3 months late: a fixed penalty of £100.
- More than 3 months late: a fixed penalty of £200.
- More than 12 months late: in addition to the fixed penalty, a tax-geared penalty can apply (a percentage of the tax due), which can be significant.
Separately, interest runs on any unpaid SDLT from the date it was due until it is paid. So late filing and late payment can both bite.
"Reasonable excuse"
You may be able to avoid or reduce a penalty if you had a reasonable excuse for filing late. There is no fixed list, but a reasonable excuse generally involves something unexpected or outside your control that stopped you filing on time, for example, a serious illness, a bereavement, or a genuine and unforeseeable problem with HMRC's systems.
Key points:
- What is not usually a reasonable excuse: simply forgetting, pressure of work, relying on someone else (such as an adviser) without checking, or not having the funds.
- You must act promptly: once the excuse ends, you should file without further delay.
- HMRC (and, on appeal, the tax tribunal) decide whether an excuse is reasonable on the facts.
What to do if you have missed the deadline
- File the return and pay as soon as possible to stop further penalties and interest building up.
- If you think you have a reasonable excuse, set it out clearly when you file or when appealing the penalty.
- You can appeal a penalty to HMRC and, if needed, the tax tribunal.
- Take professional advice for larger transactions or where penalties are substantial, your conveyancer or a tax adviser can help.
Key takeaways
- SDLT returns must usually be filed (and tax paid) within 14 days of the effective date (Finance Act 2003).
- Late-filing penalties are £100 (up to 3 months), £200 (over 3 months), plus a tax-geared penalty if over 12 months, and interest runs on unpaid tax.
- A reasonable excuse (something unexpected and outside your control) may reduce or remove a penalty, but forgetting or lack of funds usually does not count.
- File and pay promptly, and appeal if you have grounds.
Sources
- Finance Act 2003 (SDLT; 14-day filing requirement) and Schedule 10 (penalties and reasonable excuse)
- HMRC guidance on SDLT late-filing penalties and interest
--- This article is general information about the law of England & Wales as at 2026, not legal or tax advice. For advice on your circumstances, consult a qualified solicitor or tax adviser.