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HMRC internal manual

Compliance Handbook

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

Example of initial and further penalties on an amount of Stamp Duty Reserve Tax

An investor notifies HMRC that they are due to pay £50,000 of Stamp Duty Reserve Tax on 7 May 2015. The investor fails to make payment by 6 June (30 days after the accountable date for payment) but makes some payments at later dates, as shown in the table below.

The due date is 7 May 2015. The penalty date is 7 June 2015. The penalties are as follows.

  Payment Unpaid SDRT Penalty
Amount due at 7 May 2015 (unpaid at 6 June 2015)   £50,000  
Initial penalty of 5% on £50,000 at 7 June 2015     £2,500
Payment 7 November 2015 £30,000 £20,000  
5 month further penalty of 5% on £20,000 at 8 November 2015     £1,000
Payment 7 February 2016 £10,000 £10,000  
11 month further penalty of 5% on £10,000 at 8 March 2015     £500
Total penalty     £4,000