Intermediaries relief from stamp duty and SDRT
Produced in partnership with Kevin Griffin
Intermediaries relief from stamp duty and SDRT

The following Tax practice note produced in partnership with Kevin Griffin provides comprehensive and up to date legal information covering:

  • Intermediaries relief from stamp duty and SDRT
  • HMRC guidance—Stamp Taxes on Shares Manual
  • Qualifying for intermediaries relief
  • Intermediary relief from stamp duty must be claimed
  • Intermediary relief from SDRT is automatic within CREST
  • Conditions for recognition as an intermediary
  • Intermediary must be a securities/options dealer
  • Categories of recognition as intermediary
  • Recognised as an intermediary by a regulated market under HMRC approved arrangements
  • Recognised as an intermediary by a multilateral trading facility, a recognised foreign exchange or a recognised foreign options exchange
  • More...

Coronavirus (COVID-19) impact on stamp duty process: During the coronavirus outbreak, the Stamp Office is temporarily only accepting electronic versions of instruments of transfer and/or claims for relief from stamp duty and, where stamp duty is due, only accepting electronic transfer of funds (not cheques). For more information, see Practice Note: Coronavirus (COVID-19)—tax implications—Stamp taxes.

Most transactions in publicly traded UK securities involve and take place through one or more intermediaries such as stockbrokers and banks. This is why intermediaries relief from stamp duty and SDRT for transfers of securities is such an important relief. It facilitates the operation of the securities markets, including the market in contracts for differences (CFDs), for which see: Intermediaries relief supports the market in contracts for differences (CFDs).

The basic premise of the relief is that the insertion of one or more intermediaries between a seller and a buyer should not add to the stamp duty or SDRT charge which would have arisen on a direct transfer from the seller to the buyer. For more information on:

  1. SDRT, see: Stamp duty reserve tax—when it applies and

  2. stamp duty, see: What does stamp duty apply to?

As a result of the intermediaries relief, no liability to SDRT arises on most agreements to transfer chargeable securities to recognised intermediaries and no stamp duty arises where such transfers are documented (ie effected

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