Stamp Duty Land Tax: HM Revenue and Customs compliance checks
HMRC may check your Stamp Duty Land Tax (SDLT) return to make sure you've paid the right amount.
Why HMRC check SDLT returns
HMRC know that most returns are filled in correctly and the right amount of tax is calculated and paid. But they do check some returns after they바카라 사이트檙e submitted. The reason for this is to:
- understand your transaction in more detail
- check for accuracy
- make sure the SDLT system works as it should
The check doesn바카라 사이트檛 mean that HMRC think there바카라 사이트檚 anything wrong.
If you think your SDLT return is wrong
If you think that there바카라 사이트檚 something wrong on your SDLT return, tell HMRC as soon as possible. If you don바카라 사이트檛, it may mean you바카라 사이트檒l have to pay more. Read CC/FS9 The Human Rights Act and penalties factsheet before contacting HMRC.
What HMRC check
HMRC will write or phone to tell you they want to check your land or property transaction return.
If you use an agent, HMRC will contact them as well.
When HMRC contact you, they바카라 사이트檒l:
- tell you what they need from you
- give you enough time to give them the information
Find out more about the compliance checks process
Time limits
HMRC normally has 9 months from the filing date to tell you that they바카라 사이트檙e starting a check. They바카라 사이트檝e got longer if you바카라 사이트檝e changed your tax return because either:
- you have new information
- the information you gave was misleading
Information you provide
You can help end the check sooner by giving HMRC the information they ask for as soon as possible. If you can바카라 사이트檛 meet a deadline, tell HMRC why and they may allow you more time. Any records that you give will be sent back to you.
If you don바카라 사이트檛 give HMRC the information they need, they may make a formal request. If you get a formal request, reply quickly or you may have to pay a penalty.
You can carry on using an agent to deal with HMRC on your behalf while they check your return. But, even if you have an agent, you바카라 사이트檙e personally responsible for your own tax affairs. Make sure all the information your agent gives to HMRC is accurate.
Keep records
Keep records of each SDLT transaction, and include any information such as:
- contracts
- conveyances
- any maps, plans or other documents
- payments
- receipts
- details of any financial arrangements
Keep your records for at least 6 years from the effective date of the transaction.
If you don바카라 사이트檛 keep adequate records or you don바카라 사이트檛 keep your records for the required period of time, you may have to pay a penalty.
Meet with HMRC
HMRC may want to meet you to discuss the transaction and the information you바카라 사이트檝e given. They바카라 사이트檒l tell you in advance what they need to know more about. You can bring a professional adviser, friend or relative to any meeting.
Amend your return during a compliance check
If HMRC have started a compliance check and you realise something바카라 사이트檚 wrong or missed off your SDLT return, you can still amend it within 12 months of the filing date. If the correction means you바카라 사이트檙e due a repayment, you won바카라 사이트檛 be paid until after the compliance check is finished.
If you바카라 사이트檙e making an amendment because you바카라 사이트檝e underpaid SDLT, pay the additional amount immediately as interest is due from the date SDLT was payable.
After the check
If nothing바카라 사이트檚 wrong, you바카라 사이트檒l get a letter telling you the check바카라 사이트檚 finished (closure notice). In this case there won바카라 사이트檛 be any changes to your SDLT return.
If you바카라 사이트檝e paid too much tax, HMRC will change your SDLT return to show the right figures and you바카라 사이트檒l get a repayment. In some cases you바카라 사이트檒l also get interest on the amount you overpaid.
If you바카라 사이트檝e tax to pay, HMRC will send you a decision telling you:
- how much you바카라 사이트檒l have to pay
- how it바카라 사이트檚 been worked out
- when you have to pay it
You may have to pay interest if the tax should have been paid earlier, as well as a penalty.
Penalties
Penalties for inaccurate returns
There are different penalty rules depending on when the SDLT return was due to be filed.
HMRC will consider penalties if the inaccuracy is because of careless or deliberate behaviour. When deciding the amount of the penalty, they바카라 사이트檒l consider:
- the extent to which you disclose any inaccuracy in full and explain how and why it arose
- how helpful you바카라 사이트檝e been in quantifying the inaccuracy
- how helpful you바카라 사이트檝e been during the check
HMRC will consider penalties if the inaccuracy arose as a result of negligent or fraudulent conduct. The amount of the penalty will take into account:
- the extent to which you disclose any irregularities
- how much you co-operate with the check, which includes fully and freely giving HMRC the information and documents requested
- the seriousness of the offence
Fixed penalties for late amended returns
If you send in your amended return more than 14 days after the closure notice but within 3 months of the 14-day limit, you바카라 사이트檒l be charged a 拢100 penalty. In all other cases, you바카라 사이트檒l be charged a 拢200 penalty.
If you pay late, you바카라 사이트檒l also pay an interest charge.
Pay amounts due as a result of the check
HMRC will try to agree the total amount due with you. If they charge you penalties, they바카라 사이트檒l either finalise the check with a contract, or by telling you the decisions. They바카라 사이트檒l either:
- amend your return
- issue an assessment for the tax and any penalty and, send you details of the tax, interest and penalty arising
Ask HMRC to stop a check
You can ask HMRC why they바카라 사이트檙e continuing with a compliance check, if you believe:
- you바카라 사이트檝e given all the information and explanations they need to check your SDLT return
- they바카라 사이트檝e had enough time to consider the information and explanations
If you think HMRC should stop the check, tell them why. If HMRC don바카라 사이트檛 agree, you may be able to ask the independent tribunal that deals with tax matters to decide whether the check should stop.
Appeals
If you disagree with the decision, write to HMRC within 30 days of the date of the decision. Tell them why you think it바카라 사이트檚 wrong. If you can바카라 사이트檛 agree you바카라 사이트檒l be able to ask for a review by a HMRC officer who바카라 사이트檚 not been involved in the case before. You바카라 사이트檒l also have the right to go to an independent tribunal.
You can make an appeal against SDLT decisions on:
- HMRC바카라 사이트檚 amendment to your SDLT return
- any other assessment they make that you don바카라 사이트檛 think is right
- a penalty you바카라 사이트檝e been charged
Full details of how to appeal will be included with the amendment or assessment.
Updates to this page
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The appeals section has been updated. If you disagree with the decision, write to HMRC within 30 days of the date of the decision.
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The section 'What HMRC check' now includes a link to new guidance on compliance checks for individuals.
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The SDLT payments and returns time limit has been changed from 30 days to 14 days of the 'effective' transaction date.
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First published.