Find out when and why late submission penalties, late payment penalties and interest could be charged and actions to take if you disagree.
- Penalties for submitting your tax return late
- Penalties for paying your tax late
- Pay a penalty
- Ask for a review or appeal against a penalty
- Lease review returns due in the COVID-19 Period
Penalties for late submission
You may have to pay a penalty if you fail to submit an LBTT tax return on time.
If your return is received late it will depend on how late it is that determines which penalties may be applied. The table below indicates the amounts that we could potentially charge if we have not received your return in the respective periods.
| Late submission | Penalty |
|---|---|
| Return not received by submission date | £100 |
| Return not received for more than 3 months after submission date | £10 per day for up to 90 days |
| Return not received for more than 6 months | Extra £300 or 5% of any unpaid tax, whichever is greater |
| Return not received for more than 12 month | Another £300; or 5% of any unpaid tax, whichever is greater |
For more information see RSTP3006 - Penalties for failing to make LBTT return on time.
Penalties for late payment of tax
You may receive a penalty if you fail to pay the total amount of tax due on your return when your return is submitted.
Penalties for late LBTT payments
| Late Payment | Penalty |
|---|---|
|
First late payment penalty Tax not paid within 30 days of the date it is due to be paid * |
5% of outstanding tax |
|
Second late payment penalty Tax not paid within 5 months of first late payment penalty date |
5% of outstanding tax |
|
Third late payment penalty Tax not paid within 11 months of first late payment penalty date |
5% of outstanding tax |
For more information see RSTP3009 - Penalties for failing to pay LBTT on time.
Pay a penalty
You must pay within 30 days of getting a penalty notice, otherwise you will be charged daily interest.
Ask for a review or appeal against a penalty
If you disagree with the penalty imposed you have a statutory right to:
- request a Review
- appeal to The Scottish Tribunals
You do not have to request a review in order to proceed directly with an appeal to the tribunal. If you have requested a review and you are not satisfied with the outcome of it, you can still appeal to the tribunal.
Lease review returns due in the COVID-19 Period
If the lease review return has not been submitted yet or if payment has not been made, then please do this now. How to make an online LBTT lease review return (tenants) | Revenue Scotland.
Revenue Scotland acknowledge that these types of returns are non-residential and it is likely that such businesses will not have access to their premises and will have been restricted as a result of the national / local lockdowns. Also access to professional advice for these infrequent filing obligations may have been limited during the COVID period.
What is the COVID-19 period?
Revenue Scotland will treat all lease review returns with a relevant date between 21 February 2020 and 31 August 2021 as being due within the COVID-19 period.
During the this period, Revenue Scotland are taking proportionate measures to alleviate the burden on taxpayers potentially facing penalties for late returns or payments.
Penalties for lease review returns with a relevant date in this period will either be reduced to nil or suspended to provide further time for the lease review returns to be submitted.
These measures apply to lease review taxpayers who were due to submit a return in the COVID-19 period (between 21 February 2020 and 31 August 2021):
- If your lease review return was submitted but was late, the late return / payment penalty will be reduced to nil.
- If you have not submitted your return or paid any tax that was due , a letter will be issued to you confirming the date you must submit / pay by. You will be given 62 days from the date of this letter to submit your tax return and pay any tax due.
If you submit the return / make payment by the date noted in the letter the penalty will be reduced to nil. If the return / payment is not made by the date noted in the letter then the penalty will become due.
For lease review returns due outside of the COVID period the Reasonable Excuse guidance may still apply to penalties. RSTP6009 - Reasonable excuse for late notice of review or appeal | Revenue Scotland
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