Posted by admin - October 2, 2014 9:14 am
HMRC revises approach to Stamp Duty penalties
A new approach to Stamp Duty affecting penalties and appeals for late payment of Stamp Duty came into force on 1 October 2014.
What this means for you
If you have to pay Stamp Duty on share or land transactions, you now have 30 days to get your documents stamped and pay the duty. Fail to meet this deadline and you may have to pay a penalty together with interest thereon.
If your documents were executed abroad, you will have 30 days after first receiving them in the UK to get them stamped and will also need to confirm in writing the date the documents were received in the UK.
Late submission penalty amounts
The following penalty amounts apply to all documents submitted late for stamping on or after 1 October 2014:
Length of delay Penalty you will have to pay
- Documents late by up to 12 months 10% of the duty, capped at £300
- Documents late by 12 to 24 months 20% of the duty
- Documents late by more than 24 months 30% of the duty
For example, if you paid £20,000 for shares using stock transfer forms, but submitted them for stamping 13 months after they were signed and dated (‘executed’), the minimum penalty would be £20 (Duty charged at 0.5% of £20,000 = £100. 20% of £100 = £20).
For further help and advice on Stamp Duty penalties please contact your local MFW office.
