Stamp duty reliefs

The following Tax practice 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
  • Duration of the group relationship
  • 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)
  • Meaning of 'undertaking' and 'reconstruction'
  • Conditions for the relief
  • More...

Stamp duty reliefs

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 relief’ and ‘acquisition relief’, respectively

These reliefs are outlined in this Practice Note. A successful claim to stamp duty relief in respect of an instrument of transfer relating to stock or marketable securities normally also cancels any charge to stamp duty reserve tax (SDRT) that arose on the agreement for that transfer (see: procedure for claiming stamp duty relief and interaction with SDRT below).

The relief that used to be set out in FA 1986, s 76 is not covered in this Practice Note because it was repealed and ceased to be available for instruments executed on or after 6 April 2013. Even when it was in force:

  1. it did not fully relieve the transfer from stamp duty—it only reduced the stamp duty to 0.5%, and

  2. it was only relevant where the rate of stamp duty would, without the relief, have exceeded 0.5% of the consideration

While it was in force, the relief in FA 1986, s

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