Step-by-Step: From Completion to HMRC Payment
Everything that happens between the moment you complete your purchase and the moment Land Registry registers you as the owner — including SDLT1 filing, SDLT5 certification, and payment deadlines.
Key Takeaways
- The SDLT return (SDLT1) must be filed within 14 days of the effective date under FA 2003 s76 — usually 14 days from completion
- HMRC issues the SDLT5 certificate after processing the return, and this is required for Land Registry registration under FA 2003 s79
- Late filing penalties: £100 immediately, £10/day after 3 months, 5% of tax after 6 months, another 5% after 12 months under FA 2009 Sch 55
- Interest on unpaid SDLT accrues at 7.75% (base rate 4.5% plus 2.5% per FA 2009 s101) from the filing deadline
- HMRC no longer accepts cheques — payment must be by CHAPS, Faster Payments, Direct Debit, or Bacs
- Land Registration Rules 2003 r24 requires the SDLT5 certificate to accompany any Land Registry application
- Your solicitor handles the entire SDLT filing and payment process as part of their post-completion obligations
In this article
What Happens on Completion Day
Completion is the day legal ownership of the property transfers from seller to buyer. On this day, the buyer's solicitor transfers the balance of the purchase price (the agreed price minus the deposit already paid) to the seller's solicitor. Once those funds are received and confirmed, the seller's solicitor authorises release of the keys.
This is the moment the SDLT clock starts. The completion date is the "effective date" under FA 2003 s44(1), from which the 14-day filing deadline runs. Your solicitor will have already calculated the SDLT amount from the completion statement prepared beforehand and will have collected the SDLT funds from you as part of your completion monies.
Completion statements sent to buyers before completion day should clearly show the SDLT amount. If you have not seen this figure, ask your solicitor before completion. See your conveyancer's SDLT responsibilities for what to expect from your solicitor.
Filing the SDLT1 Return
The SDLT1 is the main SDLT return form under FA 2003 s76. It captures details of the transaction: the parties, the property, the consideration, any reliefs claimed, and the amount of tax due. Since 2018, SDLT returns must be filed electronically via HMRC's online service — paper returns are only accepted in exceptional circumstances with prior HMRC approval.
The SDLT1 covers standard residential transactions. Additional return forms may be required in complex situations:
- SDLT2: Required for commercial or mixed-use transactions, or residential transactions involving multiple parties or linked transactions
- SDLT3: Required where the transaction involves leasehold interests
- SDLT4: Used where the standard return does not provide sufficient space for complex transactions
HMRC provides guidance on SDLT return filing at SDLTM50000 onwards. Your solicitor is responsible for selecting the correct form and completing it accurately.
SDLTM50000: HMRC Filing Guidance
HMRC's Stamp Duty Land Tax Manual at SDLTM50000 covers the filing requirements in detail. SDLTM50100 covers the notification threshold — transactions below £40,000 may not require a return, depending on the type. Your solicitor will advise whether a return is needed for your specific transaction.
The 14-Day Deadline
FA 2003 s76 requires the SDLT return to be filed, and any tax due to be paid, within 14 days of the effective date. FA 2003 s119 defines the 14-day period as 14 calendar days — not working days. Weekends and bank holidays are counted.
The 14-day rule was shortened from 30 days in 2019 (Finance Act 2019). Solicitors are well aware of this deadline and typically file within 2–5 working days of completion. Buyers need not manage this personally — but should check with their solicitor that filing has occurred if they have not received their SDLT5 within a week of completion.
14 Calendar Days — Not Working Days
The deadline counts calendar days. A completion on 20 March 2026 means the SDLT return must be filed and tax paid by 3 April 2026 — regardless of Good Friday or Easter Monday. Plan around bank holidays if completing near public holidays.
Receiving the SDLT5 Certificate
Once HMRC processes the SDLT1 return, they issue an SDLT5 certificate. This is a formal document confirming either that SDLT has been paid, or that the transaction is exempt or non-notifiable.
FA 2003 s79 provides that a conveyance or transfer of a chargeable interest is not effective for Land Registry purposes unless HMRC has certified compliance (by issuing the SDLT5). Land Registration Rules 2003 r24 requires the SDLT5 certificate to accompany any application for first registration or registered transfer.
In practice: no SDLT5, no Land Registry registration. Your solicitor will hold the SDLT5 and submit it to Land Registry as part of the post-completion registration application. You will typically receive a copy for your own records.
HMRC usually issues the SDLT5 electronically within 24–48 hours of an online return being filed and processed. In peak periods or for complex returns, this can take longer.
SDLT Payment Methods
HMRC no longer accepts cheques for SDLT payments. All payments must be made electronically. Your solicitor will typically make the payment on your behalf using client funds collected before completion.
| Payment Method | Speed | Fees | Limit |
|---|---|---|---|
| CHAPS | Same day | £25–£35 bank charge | No limit |
| Faster Payments | Same day (often minutes) | Free | Up to £1,000,000 per transaction |
| Direct Debit | Pre-arranged | Free | Must be set up in advance |
| Bacs | 3 working days | Free or minimal | Used for batch payments |
| Cheque | Not accepted | — | No longer accepted by HMRC |
Most solicitors use Faster Payments for SDLT amounts below £1 million and CHAPS for amounts exceeding that threshold. Given the 14-day deadline, it is important that your solicitor does not use Bacs (3 working day delay) if filing close to the deadline.
Penalties for Late Filing
FA 2009 Schedule 55 sets out the penalty regime for late SDLT returns. Penalties are automatic and apply regardless of whether there is any actual tax to pay.
FA 2009 Sch 55 Penalty Structure
Day 1 (deadline missed): £100 automatic penalty. After 3 months: £10 per day for each day the return remains outstanding (maximum 90 days = £900). After 6 months from deadline: 5% of the outstanding tax (minimum £300 if no tax is due). After 12 months from deadline: a further 5% of the outstanding tax.
| Delay Period | Penalty | Statutory Basis |
|---|---|---|
| Day 1 (return overdue) | £100 | FA 2009 Sch 55 para 3 |
| 3–6 months late | £10 per day (max £900) | FA 2009 Sch 55 para 4 |
| 6 months late | 5% of tax due (min £300) | FA 2009 Sch 55 para 5 |
| 12 months late | Further 5% of tax due (min £300) | FA 2009 Sch 55 para 6 |
Note that penalties apply even where no tax is due — for example, a transaction falling below the nil-rate threshold that is still notifiable. A buyer who pays no SDLT but fails to file the return within 14 days still faces the £100 penalty.
See the 14-day deadline and penalty guide for a more detailed breakdown including penalty appeal procedures.
Interest on Unpaid SDLT
In addition to penalties for late filing, HMRC charges interest on unpaid SDLT from the date the tax was due (the filing deadline) until the date of actual payment. The interest rate is set under FA 2009 s101 as the Bank of England base rate plus 2.5%.
As of March 2026, with the Bank of England base rate at 4.5%, the SDLT interest rate is 7.75%. This rate changes as the base rate changes and is updated quarterly by HMRC.
Interest is simple (not compound) and accrues daily. On a £10,000 SDLT bill paid 30 days late, the interest charge would be approximately £64 (£10,000 × 7.75% × 30/365).
Interest Is Separate from Penalties
HMRC charges both penalties (under FA 2009 Sch 55) and interest (under FA 2009 s101) on late payments. These accumulate independently. A return filed 7 months late on a £5,000 tax bill would attract: £100 penalty + £900 daily penalties + £250 (5%) six-month penalty + approximately £290 interest.
Land Registry Registration
Your solicitor will submit the Land Registry application as part of post-completion obligations. HM Land Registry (HMLR) requires the SDLT5 certificate under Land Registration Rules 2003 r24 before processing any registration of a chargeable transaction.
The current HMLR processing time varies significantly. As of early 2026, first registrations (new to the register) take 4–6 months for complex cases. Registered transfers (where the property is already on the register) can be faster — sometimes 2–4 weeks.
During the registration gap, the buyer owns the property equitably (under the completion contract) but is not yet the registered proprietor. This is normal and does not affect occupation or mortgage rights. The priority of the buyer's interest is protected by the solicitor's registration of a priority search (OS1 or OS2) made before completion.
See SDLT return requirements for additional information on the interaction between SDLT and Land Registry.
Self-Certification for Exempt Transactions
SDLT5 Still Needed for Exempt Transactions
Even where a transaction is exempt from SDLT — for example, a transfer between spouses, a gift, or a transaction below the non-notifiable threshold — Land Registry still requires an SDLT5 certificate (or a self-certification certificate) before registering the transaction. Your solicitor will self-certify the exemption to HMRC, and HMRC will issue the relevant certificate.
Transactions below the £40,000 consideration threshold are generally non-notifiable (no SDLT return required). However, if the property is already registered at Land Registry and the transaction is a registered transfer, Land Registry requires confirmation of the SDLT position. Your solicitor will use Form SDLT60 or the relevant self-certification process for non-notifiable transactions.
Step-by-Step Timeline
Day 0 — Completion
Buyer's solicitor pays balance of purchase price. Keys released. SDLT clock starts.
Day 1–2 (typical)
Solicitor prepares and files SDLT1 return electronically with HMRC.
Day 1–3 (typical)
Solicitor transfers SDLT payment to HMRC by Faster Payments or CHAPS.
Day 1–3 (HMRC processing)
HMRC processes the return and issues the SDLT5 certificate electronically.
Day 14 — Deadline
Final day for filing return and payment. Penalties begin if not done.
Days 5–20 (post-filing)
Solicitor submits Land Registry application with SDLT5 certificate attached.
Weeks to months later
Land Registry processes the application and registers the buyer as proprietor.
Frequently Asked Questions
Who files the SDLT return?
Your solicitor or conveyancer files it on your behalf as part of post-completion obligations. However, the legal responsibility under FA 2003 s76(3) remains with the buyer. If your solicitor fails to file, HMRC will pursue the buyer for any penalties. See your conveyancer's SDLT responsibilities.
What happens if I miss the 14-day deadline?
Automatic £100 penalty applies. After 3 months, £10/day for up to 90 days. At 6 months, 5% of the outstanding tax. At 12 months, another 5%. Interest at 7.75% accrues from the deadline date throughout. Total exposure for a late return on a significant SDLT bill can be substantial.
What is the SDLT5 certificate?
A certificate from HMRC confirming your SDLT position — either that tax has been paid, or that the transaction is non-notifiable or exempt. Under FA 2003 s79 and Land Registration Rules 2003 r24, it is required before Land Registry will register the transaction.
Can I pay SDLT by cheque?
No. HMRC no longer accepts cheques for SDLT. Payment must be electronic: CHAPS (same day, £25–£35 fee), Faster Payments (same day, free, up to £1m), Direct Debit (pre-arranged), or Bacs (3 working days).
What if my transaction is exempt from SDLT?
Your solicitor self-certifies the exemption to HMRC. An SDLT5 or equivalent certificate is still issued and still needed for Land Registry. Even zero-tax transactions require the process to be followed so Land Registry can confirm SDLT compliance.
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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.