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Section 15(2) SA1891 requires any penalties and interest payable on stamping an instrument to be denoted by means of a particular stamp.

When Stamp Duty was confirmed by the stamping of paper instruments using physical dies, a practical consequence was that if HMRC were to impress separate stamps for the Stamp Duty, penalty, and interest on an instrument chargeable with all three, this could result in a substantial number of stamps and some of the text of the instrument could end up covered with stamps.

To avoid this, HMRC therefore denoted the total of any Stamp Duty, interest, and penalty by one set of stamps representing the total paid. If HMRC hadn't broken the total down into Stamp Duty, interest and penalty, there would have been difficulties should it have become necessary to subsequently make a repayment.

Due to this, a hand held stamp was used which impressed a small grid with spaces to write in the Stamp Duty, interest, penalty, and total payable, meaning the breakdown was available if required in the future. This was known as the DIPT stamp. 

HMRC only used the DIPT stamp if either interest or a penalty, or both, was chargeable. 

Following the replacement of physical stamping in 2020 (see STSM011015 and STSM011015A), details of any penalties or interest payable are instead detailed on the stamping confirmation letter that is issued.