Stamp Duty Land Tax – 14 days to file a return starting from 1st March
Starting on March 1st, 2019, taxpayers in Northern Ireland and England will now only have 14 days to file a Stamp Duty Land Tax (SDLT) return and make their payment. This is a reduction from the 30 days they previously had to do this. The 14-day countdown starts on the day after the effective date in which the real estate transaction took place.
Anyone who doesn’t comply with the 14-day deadline could be forced to pay additional penalties and interest on top of the tax amount they owe. For taxpayers in Wales and Scotland, they will continue to have 30 days to file their tax returns and make payments on whatever amount they owe in taxes.
The Autumn Statement 2015 was the first to publish these plans by the government. The purpose of the 14-day deadline is to lower the costs of compliance for customers and HM Revenue and Customs. After the Finance Bill 2018/19 was published, the plans regarding this update were confirmed.
Here are the types of land transactions in which the 14-day deadline will apply:
– Any land transaction which has an effective date of March 1st 2019 or later.
– Any land transaction which has an effective date prior to March 1st, 2019 without being notifiable to HM Revenue and Customs until after or on March 1st, 2019.
If another SDLT tax return needs to be filed after the first one already has, then the standard 30-day deadline applies to it. This situation may occur if contingent consideration was made for the SDLT and now it needs to be withdrawn.
The 14-day deadline doesn’t just include business days. It refers to calendar days too, including Saturday and Sunday.
The conveyancer is typically the one to prepare the SDLT return for their client and to arrange for their tax payment to get sent to HM Revenue and Customs. The client will look over their SDLT return first before allowing the conveyancer to send it to HM Revenue and Customs on their behalf.
Residential real estate transactions usually require advanced preparation of the SDLT return and payment arrangements. For commercial real estate transactions, this tends to happen after they’re completed.
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