What is SDLT?

When buying a property (whether freehold or leasehold) or renting a property, the Buyer or Tender must pay SDLT unless an exemption applies. The thresholds for paying SDLT is over £150,000.00 for commercial properties and over £125,000.00 in the case of residential property. SDLT is payable on the premium or the aggregate rent and it is also payable on any VAT that is payable on the purchase price and/or the rent.

In the majority of cases, a return needs to be filed following completion of a transaction – this is whether or not SDLT is payable.  HMRC can charge a fine if the Tenant or the Buyer does not provide the SDLT return within the required timeframe.

Changes as of 1 March 2019: 14 day requirement

Previously, the SDLT return needed to be submitted within 30 days of completion of a transaction.  This deadline has now been shortened to 14 days.  It is very important to meet this deadline otherwise penalties are charged for filing late (similar to personal tax returns).

Consequences of filing a return late

If the SDLT return is not filed within the new 14 day deadline, the following penalties apply:

  • Late filing of up to three months after the deadline – £100.00
  • Late filing of more than three months after the filing deadline – £200.00
  • In addition, a tax- based penalty is payable if the return is not filed within 12 months of the deadline. The maximum penalty can be the full amount of tax that is payable on the return being submitted.

At Vyman, as part of our service for dealing with the transaction on behalf of the Buyer or the Tenant, we would prepare the relevant SDLT return and notify the client at the outset of the amount of SDLT payable.  We would prepare and submit the SDLT on behalf of the Tenant/Buyer within the time required to avoid these deadlines.

Please contact one of our Team Members if you have any further queries about SDLT on acquisitions of either freehold or leasehold properties or on taking a lease and we will be pleased to assist.