Stamp duty reliefs
Stamp duty reliefs

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

  • Stamp duty reliefs
  • HMRC guidance—Stamp Taxes on Shares Manual
  • Intra-group relief
  • Definition of group for stamp duty
  • Denial of intra-group relief
  • Intra-group relief may be available where a company buys back its own shares
  • Reorganisations—reconstruction relief (FA 1986, s 75)
  • Reorganisations—relief for acquisition of target company's share capital (FA 1986, s 77)
  • No clawback of stamp duty relief
  • Procedure for claiming stamp duty relief and interaction with SDRT

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 held at least 25% of the issued share capital of the target company at all times during the period of three years immediately before the time when shares are issued by the acquiring company as consideration for the acquisition of target. The aim is for this change to prevent a stamp duty double charge from arising in respect of partition demergers (see paras 30 and 35 of the summary of responses to the consultation on aligning the stamp duty and SDRT consideration rules). For more information, see News Analysis: Draft Finance Bill 2019–20—Tax analysis—Stamp taxes on securities—amendments to FA 1986, s 77A.

Relief from stamp duty can be claimed in respect of documents effecting:

  1. transactions between companies in the same group under section 42 of the Finance Act 1930 (FA 1930)—this relief is known as ‘intra-group relief’ or ‘stamp duty group relief’, and

  2. certain reorganisations which satisfy the conditions set out in either section 75 or section 77 of the Finance Act 1986 (FA 1986)—these reliefs are known as ‘reconstruction