Finance Act 2003, Part 4
Finance Act 2003, Part 4 (Stamp Duty Land Tax)
What this means for your business
- Enforced by
- HMRC
- Applies to
- United Kingdom
- On this page
- 9 compliance obligations, 2 practical guides
What you must do
9 compliance obligations under this legislation — 1 can result in imprisonment.
Notifications 1
Notify HMRC of acceptance of a review offer within 30 days
If HMRC offers you a review of a tax decision, you must tell them you accept the offer within 30 days of the offer letter. You can only do this if you haven’t already appealed the decision to the tribunal. Failing to notify in time means you lose the right to a HMRC review.
Payments and fees 2
Pay any costs imposed by Commissioners on SDLT decisions
When the Commissioner decides on a Stamp Duty Land Tax matter, you have to pay all costs that the decision may impose – for example, court or administrative fees. The decision notice will set out how much you owe and when it must be paid. Failing to do so can lead to additional penalties and enforcement action.
Pay SDLT by the filing deadline
When you buy or otherwise deal with land, you must pay any Stamp Duty Land Tax (SDLT) that becomes due by the date you must file your SDLT return. The same rule applies if you lose a relief, amend a return or receive a tax assessment – the tax must be paid by the return’s filing date or within 30 days of the assessment.
Offences and prohibitions 4
Dishonest evasion of Stamp Duty Land Tax
Unlimited fineIf you or your business deliberately carry out dishonest actions to avoid paying Stamp Duty Land Tax – for example by claiming an unauthorised relief, rebate or deferring payment you are not entitled to – you commit a criminal offence. On conviction you will be liable to a penalty equal to the amount of tax you tried to evade, which can be unlimited. The offence does not apply if you are already convicted or fined for the same evasion under another provision.
Fail to deliver SDLT return on time
Unlimited fineIf you are required to send a Stamp Duty Land Tax (SDLT) return and you miss the filing deadline, you commit an offence. You will be hit with a flat‑rate fine (£100 if you file within three months, otherwise £200) and you may also have to pay a tax‑related penalty up to the amount of tax due on the transaction. The offence is tried in the magistrates’ court.
Fail to keep and preserve required stamp duty land tax records
Fine up to £3,000If you buy land and the transaction is not a notifiable SDLT transaction, you must keep records that prove this and preserve them for the required period. Failing to do so is an offence. On conviction you face a penalty of up to £3,000, unless you can show the required facts with other documentary evidence.
Knowingly facilitate fraudulent tax evasion
14 years imprisonmentIf you knowingly help or are involved in a fraudulent scheme to evade Stamp Duty Land Tax, you are committing a criminal offence. On conviction you could be sentenced to up to 14 years in prison and face an unlimited fine, or, for a summary case, up to six months in prison and a statutory‑maximum fine.
Reporting and filing 2
Submit land transaction return to HMRC
When you buy land that falls inside the Stamp Duty Land Tax (SDLT) rules, you must send a land transaction return to HMRC. The return, which includes your calculation of the SDLT you owe, has to be filed within 14 days of the transaction’s effective date (or sooner if regulations require). Failure to do this can lead to penalties.
Submit single SDLT return for joint land purchase
When you buy land together with one or more people, the whole purchase is treated as a single transaction for Stamp Duty Land Tax. You must file one SDLT return that is signed by all purchasers, and all of you are jointly liable for any tax, penalties or legal actions.
Penalties for non-compliance
4 penalties under this legislation. 1 can result in imprisonment. 3 carry an unlimited fine.
Knowingly facilitate fraudulent tax evasion
Unlimited fine and/or 14 years imprisonment
Dishonest evasion of Stamp Duty Land Tax
Unlimited fine
Fail to deliver SDLT return on time
Unlimited fine
Fail to keep and preserve required stamp duty land tax records
Fine up to £3,000
Practical guidance
Our guides explain how to comply with the requirements above.
Pay Stamp Duty Land Tax (SDLT)
When and how to pay SDLT on property purchases in England and Northern Ireland, including rates, reliefs, and deadlines.
Understand property transaction taxes
Overview of SDLT, LBTT, and LTT -- the three separate property transaction taxes across the UK. Covers rates, thresholds, reliefs, …
Sections and provisions
311 classified provisions from this legislation.
Duties 6
- Schedule 17 Stamp duty land tax: General and Special Commissioners, appeals and other proceedings
- s.33E Nature of review etc person in seeking
- s.33B Review by HMRC HMRC
- s.76 Duty to deliver land transaction return notifiable transaction the purchaser
- s.86 Payment of tax of paragraphs 5G
- s.103 Joint purchasers
Offences and penalties 7
- Schedule 10 Stamp duty land tax: returns, enquiries, assessments and appeals
- Schedule 11 Stamp duty land tax: record-keeping where transaction is not notifiable
- s.25 Penalty for evasion
- s.31 Time limits for demands for penalties
- s.88 Interest on penalties
- s.95 Offence of fraudulent evasion of tax
- s.99 General provisions about penalties
Powers 22
- s.18 Joint and several liability for unpaid VAT of another trader
- s.26 Penalty for contravention of relevant rule
- s.28 Liability of directors etc where body corporate liable to penalty for evasion
- s.29 Reduction of penalty under section 25 or 26
- s.30 Demands for penalties
- s.38 Admissibility of certain statements and documents
- s.41 Regulations and orders
- s.50 Chargeable consideration
- s.58B Relief for new zero-carbon homes
- s.61A Relief for special tax sites
- s.75C Anti-avoidance: supplemental
- s.82 Loss or destruction of, or damage to, return etc
- s.89 Interest on repayment of tax overpaid etc
- s.94 Power to inspect premises
- s.97 Power to allow further time and reasonable excuse for failure
- s.109 General power to vary this Part by regulations
- s.112 Power to amend certain provisions before implementation
- s.116 Meaning of “residential property”
- s.123 Consequential amendments
- s.204 Mandatory electronic payment
- ... and 2 more powers
Definitions 41
- Schedule 5 Stamp duty land tax: amount of tax chargeable: rent
- s.10 Amusement machines not operated by coins or tokens two-penny machine
- s.11 Amusement machines: use of currencies other than sterling default licence due date
- Schedule 15 Stamp duty land tax: partnerships partnership
- Schedule 22 Employee securities and options APS schemes collective investment scheme futures
- s.24 Introductory relevant tax or duty appeal tribunal the Commissioners
- Schedule 36 Foster carers
- s.42 The tax
- s.43 Land transactions land transaction
- s.44 Contract and conveyance
- s.45A Contract providing for conveyance to third party: effect of transfer of rights
- s.46 Options and rights of pre-emption
- s.47 Exchanges
- s.48 Chargeable interests chargeable interest security interest franchise
- s.51 Contingent, uncertain or unascertained consideration
- s.55 Amount of tax chargeable: general
- s.63 Demutualisation of insurance company general insurance company insurance company mutual insurance company
- s.73BA Meaning of “financial institution” financial institution
- s.81B Declaration by person authorised to act on behalf of individual
- s.84 Delivery and service of documents
- ... and 21 more definitions
Exemptions 75
- Schedule 8 Stamp duty land tax: charities relief
- s.9 Bingo duty
- Schedule 9 Stamp duty land tax: right to buy, shared ownership leases etc
- s.16 Duty at higher rate: exception for tractive units
- Schedule 19 Stamp duty land tax: commencement and transitional provisions
- s.27 Exceptions from section 26
- s.33 Right to appeal against certain decisions
- s.33A Offer of review
- s.44A Contract providing for conveyance to third party
- s.48A Interests, transactions and consideration where land in England and Wales
- s.49 Chargeable transactions
- s.52 Annuities etc: chargeable consideration limited to twelve years' payments
- s.53 Deemed market value where transaction involves connected company
- s.54 Exceptions from deemed market value rule
- s.57A Sale and leaseback arrangements
- s.57B First-time buyers
- s.58D Transfers involving multiple dwellings
- s.60 Compulsory purchase facilitating development
- s.61 Compliance with planning obligations
- s.62 Group relief and reconstruction or acquisition relief
- ... and 55 more exemptions