As previously reported here, for transactions with an effective date on or after 1 March 2019, there will be a reduction in the deadline for purchasers to file an SDLT return, and settle any SDLT liability arising. The deadline will reduce from 30 days to 14 days from the effective date of the transaction.
The effective date is normally the completion date of the transaction. However, it may be earlier than this if the majority of the consideration is paid, or the purchaser takes possession before completion.
The current 30 day limit will continue to apply where a further return is required for a transaction; for example, where contingent or unascertainable consideration becomes payable or where a SDLT relief is withdrawn. In addition, the 30 day deadline will also be retained for an application to defer the payment of SDLT (say when the purchase price of the land is uncertain or depends on the occurrence of a future contingency, for example, obtaining planning permission). However, the reduced 14 day deadline will also apply where a further SDLT return and payment are required following an application for deferment.
If any SDLT remains unpaid at the relevant date, interest is charged from the day after the liability should have been settled, until the day that the SDLT is paid. There are also penalties for late submission of a return and/or late payment of tax.
According to HMRC figures, approximately 85% of SDLT returns are already made within 14 days. Nevertheless, during the consultation process, concerns were raised in respect of the amount of data required in the SDLT return in cases where the purchase of land involved commercial leases. Many respondents anticipated there being significant difficulties in collating the necessary information in good time to comply with the reduced filing deadline.
