Tax update spring 2025—Stamp taxes on shares modernisation

Table of contents

• What are the key proposals for replacing stamp duty and SDRT with a single, self-assessed, tax on securities?
• When will the proposals take effect?
• What are the key changes when compared to the proposals first outlined in the 2023 consultation document?
• Are there any major pitfalls with the proposals?
• What are the plans for the 1.5% higher rate stamp tax charge that applies on certain transfers of securities to depositary receipt issuers and clearance service operators?

Article summary

Tax analysis: On 28 April 2025, as part of a set of documents forming part of HMRC’s Tax update spring 2025: simplification, administration and reform, HMRC released two documents in connection with stamp duty and stamp duty reserve tax (SDRT). These are: (i) an outcome (or summary of responses) in respect of the Modernisation of the Stamp Taxes on Shares Framework consultation and (ii) a new consultation titled Modernisation of the Stamp Taxes on Shares framework: 1.5% Charge. This article highlights some key themes from these documents. Written by Jamie Robson, a tax partner at Pinsent Masons LLP.