RSTP3006 - Penalties for failing to make LBTT return on time

In this page of guidance the ‘penalty date’ means the day after the filing date.

If you fail to make a LBTT return (outlined in the table in RSTP3005) on or before the filing date (specified in column 4 of that table) then on the penalty date you become liable to a fixed penalty of £100.

If your failure to make the return continues 3 months after the penalty date, you are liable to further fixed penalties (additional to the initial fixed £100 penalty) of £10 a day for up to 90 days starting from 3 months after the penalty date.

The Revenue Scotland and Tax Powers Act 2014 Amendment Regulations 2020 which came into force on 11 March 2020 made some changes to the way in which we notify and assess daily penalties:-

Filing date before 11 March 2020

If the return filing date is before 11 March 2020 and we decide that you are liable to this penalty, we will notify you specifying the date from which the daily fixed penalty is payable. The daily fixed penalty is payable from this date until the earlier of either 90 days after this date or the date on which you submit the return. The start date we specify in the notice may be earlier than the date on which the notice is given, but may not be earlier than the date 3 months from the penalty date. We will subsequently issue a separate penalty assessment notice.

Filing Date on or after 11 March 2020

If the return filing date is on or after the 11 March 2020, we will issue a single penalty assessment notice. Daily fixed penalties will commence from the day after the end of the period of 3 months from the penalty date until the earlier of either 90 days after that date or the date on which you submit the return.

If your failure to make the return continues six months after the penalty date, we may decide that you are liable to a further penalty (additional to any other penalties already imposed). The penalty amount is the greater of:

• 5% of any tax liability which would have been shown in the tax return in question (had you made it to us); and
• £300.

If your failure to make the return continues 12 months after the penalty date, we may decide that you are liable to a further penalty (additional to any other penalties already imposed). The penalty amount is the greater of:

• 5% of any tax liability which would have been shown in the tax return in question (had you made it to us); and
• £300,

unless, by failing to make the return, you are deliberately withholding information which would enable or assist us to assess your tax liability, in which case the penalty amount is the greater of:

• 100% of any tax liability which would have been shown in the tax return in question (had you made it to us); and
• £300.

You are liable to the daily penalties or the 6 month and 12 month further penalties even if we have not charged some or all of the previous penalties. For example, you can become liable to the six month further penalty even if we have not previously charged the daily penalties.

RSTPA 2014 sections 160-163

Revenue Scotland and Tax Powers Act 2014 Amendment Regulations 2020