14-Day Filing Deadline & Penalties
Understanding SDLT filing requirements, penalty structure, interest charges, and how to avoid late filing consequences.
In this article
The 14-Day Rule Explained
When you purchase a residential property in England or Northern Ireland, you must file a Stamp Duty Land Tax (SDLT) return and pay any tax due within 14 days of completion. This strict deadline applies to all property transactions, regardless of whether tax is actually payable.
The 14-day deadline was introduced in March 2019, replacing the previous 30-day limit. This change significantly reduced the time available to complete and submit your SDLT return, making it crucial to act quickly after completion.
Critical Deadline
Even if no tax is due, you must still file a return within 14 days. Failure to do so will result in automatic penalties from HMRC.
Penalty Tiers Breakdown
HMRC operates a tiered penalty system based on how late your SDLT return is filed. Penalties increase progressively, and additional charges apply the longer the return remains outstanding.
| Time Period | Penalty Amount |
|---|---|
| Up to 3 months late | £100 fixed penalty |
| 3 to 6 months late | £200 fixed penalty |
| 6 to 12 months late | Tax-geared penalty (up to amount of tax due) |
| More than 12 months late | Further tax-geared penalties plus potential investigation |
These penalties are in addition to any tax owed and interest charges. For transactions where no tax is payable, the fixed penalties still apply, making it essential to file on time even for nil-rate purchases.
Interest Charges
Beyond the fixed penalties, HMRC charges interest on any unpaid SDLT from the day after the filing deadline until the tax is paid in full. The current interest rate is 5.25% per annum, though this can change based on the Bank of England base rate.
Interest accrues daily and is calculated on the outstanding tax amount. For a £10,000 SDLT bill, one month of delay would incur approximately £43 in interest charges alone, in addition to the £100 late filing penalty.
Interest vs Penalties
Interest charges are separate from penalties and cannot be appealed based on reasonable excuse. They apply automatically to any late payment of tax.
Before and After April 2025 Comparison
SDLT Rules Evolution
| Rule | Pre-April 2025 | Current (2025+) |
|---|---|---|
| Filing deadline | 30 days (pre-March 2019) | 14 days (current) |
| Late filing penalty ≤3 months | £100 | £100 (unchanged) |
| Late filing penalty >3 months | £200 | £200 (unchanged) |
| Nil-rate band | £250,000 | £125,000 (more transactions now taxable) |
| Additional dwelling surcharge | 3% | 5% (higher penalties at stake) |
The reduction in the nil-rate band and increase in the additional dwelling surcharge mean more buyers face higher SDLT bills, making timely filing and payment even more critical to avoid substantial interest charges.
Reasonable Excuse
HMRC may cancel penalties if you can demonstrate a reasonable excuse for late filing. A reasonable excuse is an unexpected or unusual event that prevented you from meeting the deadline, despite taking reasonable care.
Examples of acceptable reasonable excuses include:
- Serious illness or hospitalization of the buyer or their immediate family
- Death of a close family member around the completion date
- Postal delays or system failures
- Fire, flood, or theft affecting essential documents
- Incorrect professional advice from a qualified adviser
What does NOT constitute a reasonable excuse:
- Relying on someone else to file without following up
- Lack of awareness of the deadline
- Pressure of work or other commitments
- Insufficient funds to pay the tax
Crucially, you must file the return or pay the tax as soon as the reasonable excuse ends. If you delay further after recovering from illness or resolving the issue, HMRC will not accept the excuse.
How to Appeal a Penalty
If you believe a penalty has been issued incorrectly or you have a reasonable excuse, you can appeal to HMRC. The appeal process has strict time limits and procedural requirements.
Step 1: Review the penalty notice — HMRC will send a penalty notice detailing the amount and reason. Check all dates and amounts carefully.
Step 2: Submit your appeal in writing — You must appeal within 30 days of the penalty notice date. Send your appeal to the address on the penalty notice, clearly stating:
- Your name, address, and SDLT transaction reference
- The penalty amount and date of the notice
- The grounds for your appeal
- Supporting evidence
Step 3: HMRC review — HMRC will review your appeal and respond, usually within 45 days.
Step 4: Tribunal appeal — If HMRC rejects your appeal, you can escalate to an independent tax tribunal within 30 days.
Tips for Avoiding Late Filing
- Instruct your solicitor early — Confirm before completion that they will handle the SDLT return
- Register for HMRC online services — Register for an HMRC Government Gateway account before completion
- Gather documents in advance — Have purchase contracts, mortgage details, and identification ready
- Set calendar reminders — Add alerts for 7 days and 12 days after completion
- File as soon as possible — Don't wait until day 13 or 14
- Check submission confirmation — Ensure you receive an HMRC reference number
- Pay immediately — Use Faster Payments or CHAPS to ensure tax reaches HMRC within the deadline
Calculate Before Completion
Use our stamp duty calculator before completion to know exactly how much tax you'll owe. This allows you to arrange funds in advance and file promptly.
Consequences Beyond Financial Penalties
Late filing can have implications beyond the direct financial penalties and interest charges:
- Land Registry delays — You cannot register legal ownership of the property until HMRC issues an SDLT certificate
- Mortgage issues — Some lenders require proof of SDLT payment before releasing certain mortgage funds
- Future transactions — Repeated late filing may trigger closer HMRC scrutiny
- Sale complications — If you sell before resolving SDLT issues, this can complicate the transaction
Summary
The 14-day SDLT filing deadline is strict and non-negotiable. Penalties start at £100 and increase to £200 after three months, with tax-geared penalties applying beyond six months. Interest charges accrue daily on unpaid tax at 5.25% per annum. With the nil-rate band now at £125,000 and the additional dwelling surcharge at 5%, more buyers face substantial SDLT bills, making timely compliance essential.
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.