SolvedCH154560 | Penalties for failure to pay on time: rules for specific taxes: Stamp Duty Reserve Tax (SDRT): example
From HM Revenue & Customs · Compliance Handbook
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 |