Higher rate SDRT and stamp duty charges
Higher rate SDRT and stamp duty charges

The following Tax practice note provides comprehensive and up to date legal information covering:

  • Higher rate SDRT and stamp duty charges
  • Executive summary
  • HMRC guidance—Stamp Taxes on Shares Manual
  • Definitions and relevant concepts
  • Meaning of clearance service and depositary receipt system
  • No higher rate SDRT charges on issue of shares or loan capital
  • Claiming refunds
  • Higher rate charges on transfer—SDRT and stamp duty
  • Higher rate stamp duty charge on transfer
  • Notification requirements for higher rate stamp duty
  • More...

FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework: The government is asking for views on the principles and design of a new framework for stamp duty and stamp duty reserve tax (SDRT) to inform a longer-term modernisation of the stamp taxes on shares (STS) framework. The call asks for views on what should be prioritised for modernisation including questions on amalgamating stamp duty with SDRT, the scope of stamp duty and SDRT, reporting and collecting STS and enforcement and payment of STS. The call follows a review and a report by the Office of Tax Simplification in 2017. The government envisages that it will consult further on specific policy and legislative changes with no major legislative redesign until Finance Bill 2021–22 at the earliest. The closing date for comments is 13 October 2020. For more information, see News Analysis: HMRC launches call for evidence on designing a new stamp taxes framework.

Higher rate charges refer to the circumstances when SDRT or stamp duty is charged at 1.5% instead of the usual 0.5% rate.

This higher rate charge is referred to as a season ticket because it was intended to be charged on entry (whether by issue or transfer) into a depositary receipt system or clearance service inside which transfers of the securities would generally be free from stamp duty and SDRT. The

Related documents:

Popular documents