Penalties for failure to pay on time: rules for specific taxes: Stamp Duty Reserve Tax (SDRT): failure to pay all or part of amounts due - overview
If a person fails to make a full payment of SDRT by the penalty date, they become liable to a penalty on the amount unpaid.
The penalties for failing to pay SDRT in full and on time are
- an initial penalty of 5% for tax unpaid at the penalty date, see CH154530, and
- two further penalties of 5% each for tax unpaid at 5 and 11 months after the penalty date, see CH154540.
So a failure to pay that continues for 11 months after the penalty date can incur all of these penalties on the same unpaid tax.
It is important to distinguish between
- the accountable date for payment - the date when the accountable person needs to pay the tax, and
- the penalty date - which is the first date on which a penalty is chargeable for a tax period.