Stamp duty and SDRT on the sale of certificated registered UK shares
Stamp duty and SDRT on the sale of certificated registered UK shares

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

  • Stamp duty and SDRT on the sale of certificated registered UK shares
  • HMRC guidance—Stamp Taxes on Shares Manual
  • Share purchase agreement generally not subject to UK stamp duty
  • Stock transfer form subject to UK stamp duty
  • Buyer generally pays UK stamp duty
  • Consideration chargeable to UK stamp duty
  • Cash consideration determined by reference to completion accounts
  • Practical implications
  • Earn-out consideration
  • Practical implications
  • 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) implications for tax lawyers—Stamp taxes.

FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework: The government is asking for views on the principles and design of a new framework for stamp duty and stamp duty reserve tax (SDRT) to inform a longer-term modernisation of the stamp taxes on shares (STS) framework. The call asks for views on what should be prioritised for modernisation including questions on amalgamating stamp duty with SDRT, the scope of stamp duty and SDRT, reporting and collecting STS and enforcement and payment of STS. The call follows a review and a report by the Office of Tax Simplification in 2017. The government envisages that it will consult further on specific policy and legislative changes with no major legislative redesign until Finance Bill 2021–22 at the earliest. The closing date for comments is 13 October 2020. For more information, see News Analysis: HMRC launches call for evidence on designing a new stamp taxes framework.

Although the owner of certificated and registered shares in a UK incorporated company

Popular documents