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This is a freeview 'At a glance' guide to Stamp Duty penalties.

Stamp Duty penalties: from 1 October 2014 there are revised penalties for late stamping.

Stamp Duty is a tax on paper instruments and is not to be confused with Stamp Duty Land Tax (SDLT). 

Where Stamp Duty is payable, the documents must be stamped by HMRC within 30 days of being executed otherwise a late submission penalty may be charged.

Penalties

Lateness Penalty
Up to 12 months 10% of duty, capped at £300
12 to 24 months 20% of duty
More than 24 months 30% of duty


Appeals

A penalty may be appealed within 30 days on the grounds that the taxpayer has a reasonable excuse for submitting a return late. 

HMRC lists the following as examples of what sort of excuses it considers 'reasonable'. 

From HMRC:

Some examples of a 'reasonable excuse' include:

Some examples of excuses that HMRC will not accept as reasonable include:

Note that if the reason for the delay was a personal one, HMRC will not accept it as reasonable if it did not prevent you from dealing with your other affairs.

Bear in mind that each case will need to be decided according to its own merits and HMRC's view is only its own view: the tribunal may hold a different opinion.

See HMRC penalties for Stamp Duty returns and payment

Useful guides on this topic

Stamp duty: Share for share exchanges
How to you calculate stamp duty on a share for share exchange? What relief is available from stamp duty on a share for share exchange? 


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