CH154510 - Penalties for failure to pay on time: rules for specific taxes: Stamp Duty Reserve Tax (SDRT): overview

Stamp Duty Reserve Tax (SDRT) is payable on transactions such as electronic ‘paperless’ share transactions, when there is no stamped instrument of transfer.

The penalty rules for failure to pay SDRT on time start on 1 January 2015 and apply when an accountable person fails to make payments of SDRT in full and on time.

To decide whether a person is liable to a penalty you need to know the accountable date for payment and the penalty date.

The accountable date for payment of an amount of SDRT shown on a SDRT notification submitted directly to HMRC is the seventh day of the month after the month in which shares were bought. For example, the accountable date for payment of SDRT on shares bought on 18 April is 7 May.

The accountable date for payment of an amount of SDRT notified through a relevant electronic system is the fourteenth day after the date the shares were bought. For example, the accountable date for payment of SDRT on shares bought on 18 April is 2 May.

The penalty date is the 31st day after the accountable date for payment.

A person is liable to

  • an initial penalty if an amount of SDRT is unpaid at the penalty date, and
  • two further penalties if an amount remains unpaid 5 and 11 months after the penalty date.

FA09/SCH56