An SDLT return is the form that tells HMRC about a land or property purchase in England or Northern Ireland and works out the Stamp Duty Land Tax due. It must reach HMRC within 14 days of the effective date, usually completion, even if there is no tax to pay. You generally need one when the price is £40,000 or more. Solicitors and conveyancers file online through HMRC's Stamp Taxes Online service. Buyers who are not represented must use the paper SDLT1 form. Once the return is accepted, HMRC issues an SDLT5 certificate, which you need to register the property at HM Land Registry.
Do you need to file an SDLT return?
Under section 76 of the Finance Act 2003, the buyer must file a return for every "notifiable" transaction. HMRC's guidance on who needs to send a return summarises it as follows.
A return is usually needed when:
- Buying a freehold. For a price or value of £40,000 or more;
- Buying a leasehold. Depending on the premium and the rent;
- Taking a transfer for consideration. For example, taking on someone's mortgage or buying a share in a property.
A return is not usually needed when:
- No payment is made. A genuine gift with no consideration and no mortgage taken on;
- Property is inherited. Left to you in a will;
- Divorce or dissolution. Transfers made because of a divorce or the dissolution of a civil partnership;
- The price is below £40,000. £39,999 or less.
The point that catches people is that a return can be required with no tax due. A first-time buyer under the relief threshold, or a purchase covered by a relief, still needs a return within 14 days. Reliefs are generally claimed on the return itself, so a missing return can also mean a missing relief claim.
Filing online: solicitors and agents
Online filing through HMRC's Stamp Taxes Online service is only for solicitors, agents and legal conveyancers. They need an agent services account and a Stamp Taxes Online registration, or they can use recognised commercial software. A representative using Stamp Taxes Online must file the return online. HMRC rejects online returns that are printed and posted.
On submission, the representative receives:
- A Unique Transaction Reference Number (UTRN). An 11-character reference made up of 9 numbers and 2 characters, which must be quoted on the payment;
- An online SDLT5 certificate. This proves that a return has been made and goes to HM Land Registry with the registration application.
A single online return can include up to 99 entries for buyers, sellers and properties. Larger transactions use a schedule. For an additional residential property, HMRC tells representatives to select property type code 04 so the higher rates are picked up. Even when a solicitor files, HMRC's return guidance is clear that the buyer is still responsible for the return being on time and correct. Check the draft before you approve it.
Filing on paper: the SDLT1
If you are buying without a solicitor or conveyancer, you file the paper SDLT1:
- Order the form early. Each SDLT1 is printed with its own UTRN, so photocopies cannot be reused for other transactions;
- Add supplementary forms where needed. Use SDLT2 for more than 2 buyers or sellers, SDLT3 for a freehold transaction involving more than one property, and SDLT4 for complex leases, commercial transactions, company buyers and some other cases;
- Post it in time. Send it to BT Stamp Duty Land Tax, HM Revenue and Customs, BX9 1LT, allowing at least 3 working days. It must arrive within the 14 days;
- Pay separately or with the return. Pay online using the UTRN, or send a cheque with the payslip from the back of the return;
- Wait for the SDLT5. If anything is missing or unclear, HMRC sends form SDLT8 asking for it and will not issue the SDLT5 until it has the answer. You then post the SDLT5 to HM Land Registry with your application.
What the return asks for
The return is a self-assessment, so the figures you enter determine the tax. The key entries are:
- Property type. Residential, mixed or non-residential. This decides which rate table applies;
- Effective date. Usually completion, but earlier if the contract was substantially performed, for example by taking possession or paying most of the price;
- Consideration. Usually the price, but it can include debt taken on, works or services, or goods;
- Reliefs claimed. Such as first-time buyer relief, group relief or charities relief;
- Higher rates and surcharges. Whether the additional dwelling or non-resident rates apply;
- Buyer and seller details. For every party to the transaction.
Errors in the property type or the higher-rates questions are the most expensive. For current rates and surcharges, see our guide to stamp duty changes.
Late returns, amendments and refunds
| Situation | Rule |
|---|---|
| Return up to 3 months late | £100 fixed penalty |
| Return more than 3 months late | £200 fixed penalty |
| Return not filed within 12 months of the filing date | Tax-based penalty of up to the tax due, as well as the fixed penalty |
| Correcting a mistake | Amend within 12 months of the filing date |
| Higher rates refund after selling your old home within 3 years | Claim within 12 months of the later of the sale or the filing date |
The filing date is 14 days after the effective date. Interest runs on late-paid tax from the day after it was due. For the payment side, and the effective date rules in more detail, see when do you pay stamp duty.
Acumon's SDLT team reviews returns on complex purchases, including mixed-use property, linked transactions and claims for relief. We also handle amendments and refund claims within the 12-month window. Landlords and investors can combine this with our property tax advice.