The following Tax practice note provides comprehensive and up to date legal information covering:
If an exemption from stamp duty applies, a document (ie an instrument of transfer) which would otherwise be subject to UK stamp duty is exempt from such duty. This Practice Note outlines the key exemptions and reliefs from stamp duty.
HMRC's guidance on stamp duty and stamp duty reserve tax (SDRT) is found in the Stamp Taxes on Shares Manual (STSM). The STSM replaced the old Stamp Taxes Manual. Despite its name, the STSM contains stamp tax guidance not just on shares but also on other types of securities. The old Stamp Taxes Manual is still available online as a PDF document (for which, click here), but note that it was last updated in 2001.
The key exemptions include:
the exemption for transfers where the consideration is £1,000 or less (further outlined in this Practice Note—see: Stamp duty exemption for low value transfers)
the exemption for transfers of non-marketable debentures (further outlined in this Practice Note—see: Stamp duty exemption for non-marketable debentures)
the exemption for transfers of loan capital (for which, see Practice Note: Loan capital exemption from stamp duty, which also outlines the exemption that applied to transfers (made on or after 1 January 2014 but before 12 February 2019) of regulatory capital securities under the Taxation of Regulatory Capital Securities Regulations 2013, which were revoked with
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This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan to value ratioIt explains:
What is rescission of a contract?The remedy of rescission is available to a party whose consent, in entering into a contract, has been invalidated in some way:•the effect of rescinding a contract is to extinguish it and restore the parties to their pre-contractual positions•the main grounds of
On the disposition of a property (whether by way of conveyance, transfer or charge), the party making the disposition will normally provide a title guarantee which implies standard form covenants for title. A landlord may give a title guarantee when granting a lease, but this is rare in practice.
Coronavirus (COVID-19): The guidance detailing normal practice set out in this Practice Note may be affected by measures concerning process and procedure in the civil courts that have been introduced as a result of the coronavirus (COVID-19) pandemic. For guidance, see Practice Note: Coronavirus
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