Stamp duty and SDRT and depositary interests in foreign shares
Produced in partnership with Kevin Griffin
Stamp duty and SDRT and depositary interests in foreign shares

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

  • Stamp duty and SDRT and depositary interests in foreign shares
  • HMRC guidance—Stamp Taxes on Shares Manual
  • What is a depositary interest?
  • Stamp duty should not apply to transfers of CREST depositary interests (CDIs)
  • CDIs and SDRT
  • Conditions for relief
  • Not all CDIs qualify for DI relief, but may still be exempt from SDRT
  • How relief is obtained
  • Obligation to notify HMRC

This practice note explains:

  1. what depositary interests (DIs) are and why they are used

  2. why stamp duty is unlikely to apply to transfers of UK issued DIs

  3. the conditions that must be satisfied for relief from SDRT to apply to a transfer of DIs

  4. how the relief is obtained, and

  5. the notification obligations imposed when the SDRT relief applies

HMRC guidance—Stamp Taxes on Shares Manual

HMRC's guidance on stamp duty and SDRT is now found in the Stamp Taxes on Shares Manual (STSM), which has replaced the old Stamp Taxes Manual. The old Stamp Taxes Manual is still available online as a PDF document (for which click here). It was last updated in 2001. The old manual is out of date and potentially misleading.

In this practice note, references to the old manual have been replaced with references to STSM. Even the new STSM, however, is not fully up to date. It has, for instance, not yet been updated to reflect the abolition of the Schedule 19 charge or the introduction of the exemption for unlisted securities admitted to trading on a recognised growth market.

What is a depositary interest?

A depositary interest (DI) is a security issued by a depositary in country X, representing a security issued in country Y. Those issued outside the UK are often referred to