Stamp duty—basic principles
Stamp duty—basic principles

The following Corporate guidance note provides comprehensive and up to date legal information covering:

  • Stamp duty—basic principles
  • Scope of stamp duty
  • Enforcement
  • Territorial scope of stamp duty
  • Stamp duty chargeable by reference to consideration
  • Exemptions and reliefs
  • Relevance of stamp duty reserve tax (SDRT)

FORTHCOMING CHANGE on extending market value rule to transfers of unlisted securities to connected companies: Following a consultation on aligning the stamp duty and SDRT consideration rules that ran until 30 January 2019, Finance Bill 2019–20 extends, with effect from Royal Assent, the market value rule for stamp duty and SDRT purposes to transfers of unlisted securities to connected companies (ie where the transferor is (or is the nominee for a person that is) connected with the transferee company) but only where some or all of the consideration consists of the issue of shares. In its summary of responses to that consultation, HMRC confirms that, at this time, it will not be taking forward any of the other proposals made in the consultation. For more information, see News Analysis: Draft Finance Bill 2019–20—Tax analysis—Stamp taxes on securities—extension of market value rule to transfers of unlisted securities to connected companies and for more information on the original consultation, see News Analysis: Exploring the stamp taxes on shares consideration rules consultation.

FORTHCOMING CHANGE on amendments to FA 1986, s 77A: Finance Bill 2019–20 amends, with effect from Royal Assent, section 77A of Finance Act 1986 (FA 1986) to ensure that stamp duty relief under FA 1986, s 77 can still apply if the person who obtains control of the acquiring company has