What does stamp duty apply to?
What does stamp duty apply to?

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

  • What does stamp duty apply to?
  • HMRC guidance—Stamp Taxes on Shares Manual
  • Table outlining examples where stamp duty does and does not apply
  • Definitions
  • The memorandum rule

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.

Subject to exemptions and reliefs, UK stamp duty applies to:

  1. instruments of transfer relating to stock or marketable securities (such as stock transfer forms)—for more information on the meaning of 'stock' and 'marketable securities', see: Definitions below

  2. instruments effecting a transfer of any interest in a partnership which holds stock or marketable