How to Pay Stamp Duty 2026 - Deadlines, Process & Penalties
Your solicitor pays HMRC on your behalf within 14 days of completion. Here is exactly how it works.
Your solicitor or conveyancer pays stamp duty to HMRC on your behalf within 14 days of completion. You do not deal with HMRC directly.
The Step-by-Step Process
The 14-Day Deadline
The SDLT return and payment must be submitted within 14 calendar days of the completion date. This includes weekends and bank holidays. The deadline cannot be extended except in very limited circumstances.
Your solicitor must have your stamp duty funds before completion. They will request these funds as part of the completion statement, usually a few days before completion day. Do not wait until completion day to transfer stamp duty funds.
Penalties for Late Payment
| When late | Penalty | Additional |
|---|---|---|
| Up to 3 months after deadline | £100 | Plus daily interest from day 15 |
| 3-6 months after deadline | £200 | Plus continuing interest |
| Over 6 months | Greater of £300 or 5% of SDLT due | Plus interest, further penalties possible |
| Over 12 months | Greater of £3,000 or 10% of SDLT due | Highest tier, potential investigation |
Interest is charged from the day after the 14-day deadline at HMRC's standard rate (currently 7.25% per annum). Even a single day's late payment triggers the penalty. Your solicitor is responsible for filing on time.
Can You Add Stamp Duty to Your Mortgage?
Most mortgage lenders do not allow you to borrow specifically to cover stamp duty. Your mortgage offer will typically be a percentage of the property purchase price only. Stamp duty, legal fees, and survey costs are expected to be funded separately from savings.
Some lenders allow you to borrow up to a small percentage above the property value to cover all purchasing costs. This requires a high enough income and a low enough loan-to-value ratio. If this is relevant to you, ask a mortgage broker about lenders who offer higher borrowing for purchasing costs.
If you borrow stamp duty on a 25-year mortgage at 5%: every £5,000 of stamp duty added to the mortgage costs approximately £29/month and £8,800 in total interest over 25 years. It is almost always cheaper to save up and pay stamp duty upfront.
Scotland and Wales
LBTT is paid to Revenue Scotland, not HMRC. The same 14-day deadline from completion applies. Your solicitor handles the return and payment via Revenue Scotland's online system. The process is practically identical to SDLT.
LTT is paid to the Welsh Revenue Authority (WRA). The same 14-day deadline applies. Your solicitor files via the WRA online portal and pays the tax on your behalf. Always ensure you know which tax authority applies to your purchase.
FAQs
When do you pay stamp duty?
Stamp duty must be paid within 14 days of completion. Your solicitor handles this on your behalf - you do not deal with HMRC directly. You will need to transfer the stamp duty amount to your solicitor's client account before completion day, as part of the completion funds.
What happens if you pay stamp duty late?
Late payment triggers a £100 penalty from day 15. This rises to £200 after 3 months, and additional penalties up to £3,000 or 10% of the SDLT due after 12 months. Daily interest also accrues from day 15. Your solicitor is responsible for filing on time, but you must ensure the funds are available before completion.
Can you add stamp duty to your mortgage?
Most lenders do not allow this. Stamp duty must typically come from savings. Some lenders allow borrowing slightly above the purchase price to cover all buying costs, but this is subject to income and LTV limits. Adding stamp duty to your mortgage increases total interest paid over the mortgage term. Use our calculator to know your stamp duty figure before applying for a mortgage.
What is the stamp duty 14-day rule?
The SDLT return must be filed and payment made within 14 calendar days of the effective date (usually completion). This 14-day period includes weekends and bank holidays. In Scotland and Wales, the same 14-day deadline applies to LBTT and LTT respectively.