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HMRC internal manual

Stamp Duty Land Tax Manual

Compliance: Interest

Interest runs from the date the tax should have been paid. See SDLTM85930 

Interest is regarded as commercial restitution to the Crown made for the purpose of making good a loss of tax. It should not be regarded as punitive to the purchaser.


Interest is payable without deduction of tax and is not allowable as a deduction in computing income, or profits or gains for tax purposes.


The rate of interest is fixed by statutory instrument and is the rate applicable under FA89/S178.

Bankruptcy and liquidation

Interest under the Taxes Acts ceases to run when a purchaser becomes bankrupt or an insolvent company goes into liquidation. Any interest for the bankruptcy or liquidation period will, if there is a surplus, be paid under the bankruptcy legislation or the Companies Acts.