When Do I Pay Stamp Duty?
Understanding payment deadlines and the completion timeline.
Quick Answer: Stamp duty must be paid within 14 days of completion. Your solicitor handles this automatically.
Key Takeaways
- Stamp duty must be paid within 14 days of completion; your solicitor handles this automatically
- Late payment triggers automatic HMRC penalties starting at £100, escalating to 100% of tax owed
- Interest is charged at 7.5% per annum on all unpaid SDLT from the original deadline
- Scotland and Wales have longer 30-day deadlines under their own tax systems (LBTT and LTT)
- You do NOT need to pay stamp duty on inherited property, gifts without mortgage, or purchases below the threshold
In this article
The 14-Day Deadline
In England and Northern Ireland, Stamp Duty Land Tax (SDLT) must be paid within 14 days of the "effective date" - usually the completion date when you receive the keys. Use our stamp duty calculator to work out exactly how much you'll need to pay.
This deadline is strict and applies regardless of whether you're a first-time buyer, moving home, or buying an investment property. The clock starts ticking from the moment completion happens, not from when you exchange contracts or when you receive confirmation of the transaction.
The 14-Day Deadline Explained
Understanding what counts as "completion day" is crucial for meeting the deadline. Completion is the day when:
- The full purchase price is transferred to the seller
- You receive the keys to the property
- Legal ownership officially transfers to you
- You can legally move into the property
The 14-day countdown begins on the completion date itself (day zero), so if you complete on 1st March, your SDLT return and payment must reach HMRC by 15th March. If the 14th day falls on a weekend or bank holiday, the deadline extends to the next working day.
What If Exchange and Completion Are Separate?
In most UK property transactions, exchange of contracts and completion happen on different dates (typically 1-4 weeks apart). The SDLT deadline is always based on completion, not exchange. When you exchange, you're merely committing to buy - no stamp duty is due at this stage.
Property Purchase Timeline
| Stage | What Happens | SDLT Due? |
|---|---|---|
| Offer Accepted | Sale agreed, conveyancing begins | No |
| Exchange | Contracts signed, deposit paid | No |
| Completion | Keys received, ownership transfers | Clock starts |
| Within 14 days | Solicitor files return and pays SDLT | Payment due |
What Happens If You Pay Late?
Missing the 14-day deadline triggers automatic penalties from HMRC. Read our detailed guide on 14-day deadline penalties. These penalties are applied in stages and can quickly accumulate:
HMRC Penalty Structure
Flat penalty of £100, regardless of the amount of SDLT owed
Additional £200 penalty (total £300)
Daily penalties of £10 per day (up to 90 days = £900)
Tax-geared penalty of up to 100% of the tax due
7.5% per annum on all unpaid SDLT from the original deadline
The interest charge is particularly significant on large property purchases. For example, if you owe £50,000 in SDLT and pay 6 months late, you'll face:
- £300 in fixed penalties
- £1,875 in interest (£50,000 × 7.5% × 6/12)
- Total additional cost: £2,175
Can Penalties Be Waived?
HMRC may reduce or cancel penalties if you have a reasonable excuse, such as serious illness, bereavement, or if your solicitor failed to act despite your instructions. However, simply forgetting or not knowing about the deadline is not considered a reasonable excuse. You must appeal within 30 days of receiving a penalty notice.
How to Pay SDLT
Most buyers never directly pay SDLT themselves - their solicitor or conveyancer handles both the return filing and payment as part of the conveyancing process. However, it's useful to understand how the payment works:
Payment Methods Accepted
- Bank transfer (BACS/CHAPS): Most common method used by solicitors. Faster Payments are accepted for amounts under £20,000
- Debit card: Can be used for online payments through HMRC's portal
- Cheque by post: Payable to 'HM Revenue and Customs only', though this method is rarely used due to postal delays
Credit Cards NOT Accepted
HMRC does not accept credit card payments for SDLT. This is to prevent buyers from deferring the tax liability by putting it on credit. Only debit cards, bank transfers, and cheques are accepted.
Solicitor Handling Payment
When your solicitor handles payment (the standard approach):
- They will request SDLT funds from you before completion
- The money is held in their client account
- They complete the SDLT return online after completion
- Payment is made to HMRC via bank transfer within the 14-day window
- You receive a copy of the SDLT5 certificate for your records
See our complete SDLT filing guide for more details on the process.
When You Do NOT Need to Pay
While most property purchases trigger SDLT, there are important exceptions where no payment is required:
| Situation | SDLT Due? | Notes |
|---|---|---|
| Purchase under £250,000 (standard buyer) | No SDLT | Below threshold |
| Purchase under £425,000 (first-time buyer) | No SDLT | First-time buyer relief |
| Inherited property | No SDLT | No purchase price paid |
| Gifted property (no mortgage) | No SDLT | True gift with no consideration |
| Divorce/separation transfer | Usually no SDLT | If part of court order |
| Property variation in a will (within 2 years) | No SDLT | Deed of variation |
Even when no SDLT is due, you may still need to file a return in certain circumstances. Your solicitor will advise on whether a nil return is required.
Scotland and Wales Deadlines
Scotland and Wales operate their own property transaction tax systems with different deadlines from England and Northern Ireland:
Scotland (LBTT)
Land and Buildings Transaction Tax must be filed and paid within 30 days of the effective date of the transaction.
Administered by: Revenue Scotland
Late penalty: £100 (up to 3 months)
Interest rate: 7.5% per annum
Wales (LTT)
Land Transaction Tax must be filed and paid within 30 days of the effective date of the transaction.
Administered by: Welsh Revenue Authority
Late penalty: £100 (up to 6 months)
Interest rate: 7.5% per annum
The longer 30-day deadline in Scotland and Wales provides more breathing room than the 14-day England/NI deadline, but the penalty structure is similar if you miss it.
Worked Example: Timeline from Offer to Payment
Here's a realistic timeline showing when SDLT is due in a typical house purchase:
Offer accepted
Purchase price: £350,000
Mortgage offer received
Surveys and searches in progress
Exchange of contracts
10% deposit paid (£35,000)
⚠️ No SDLT due yet
Completion day
Keys collected, ownership transfers
✓ 14-day countdown starts
Solicitor files SDLT return
SDLT calculated: £5,000
SDLT payment made
Bank transfer to HMRC
✓ Within deadline (8 days after completion)
SDLT5 certificate received
Deadline was 26th April (14 days from 12th)
In this example, the solicitor filed and paid well within the deadline. The buyer was asked to transfer the SDLT amount to the solicitor's client account a few days before completion to ensure funds were available.
Frequently Asked Questions About Stamp Duty Payment
Can I pay stamp duty in instalments?
No, SDLT must be paid in full within the 14-day deadline. There is no instalment option available, even for very large amounts. However, if you're buying through a company, special rules may apply for certain commercial transactions. For residential purchases, you must have the full SDLT amount available at completion.
Can my solicitor pay stamp duty for me?
Yes, and this is the standard practice in the UK. Your solicitor will handle both filing the SDLT return and making the payment to HMRC on your behalf. They will request the SDLT funds from you (usually before completion), hold them in their client account, and then make the payment within the deadline. You'll receive the SDLT5 certificate as proof of payment.
What if completion is delayed?
If your completion date is postponed, the 14-day SDLT deadline also moves forward since it's based on the actual completion date, not the original planned date. The deadline only starts when completion actually occurs. However, make sure your solicitor is aware of any delays so they can adjust their filing schedule accordingly.
Do I pay stamp duty on exchange or completion?
Stamp duty is due after completion, not exchange. When you exchange contracts, you're committing to buy the property and typically pay a 10% deposit, but no SDLT is due at this stage. The 14-day countdown only begins on completion day when ownership legally transfers and you receive the keys. This is why exchange and completion are usually separate dates.
What happens if my solicitor misses the deadline?
If your solicitor misses the SDLT deadline due to their error or negligence, they are professionally liable and should cover any penalties and interest charges that result. You should not be out of pocket due to their mistake. Contact them immediately if you suspect a missed deadline, and if they refuse to cover the costs, you may need to make a complaint to the Legal Ombudsman or their professional indemnity insurer.
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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.