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Generic Tax Name Stamp duty - Reserve tax
Tax name in the national language Stamp duty reserve tax
Tax name in English Stamp duty reserve tax
Member State UK-United Kingdom
Tax in force since 1986/10/27
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Finance Act 1986, as amended by subsequent finance acts.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

Worldwide, although only applies to UK shares.

 
Taxpayers

Buyers (although with the option in some cases for vendors to arrange to meet the liability).

 
Tax object and basis of assessment

Agreements to transfer chargeable securities (e.g. stocks and shares) for money or money's worth.

The tax is ad valorem on the price paid (or the market value of a non‑cash consideration).

 
Deductions, Allowances, Credits, Exemptions

  Exemptions and Reliefs:

  • British Government and local authority securities.
  • Loan capital which does not carry conversion rights.
  • Non‑UK securities (unless a register of the securities is kept in the UK).
  • Purchases by a charity.
  • Transfers of units in a foreign unit trust.
  • Purchases by recognised intermediaries.
  • Bearer securities.
  • The issue of new securities.
  • Repurchases and stock lending
  • Shares received as a gift
  • Shares left in a will
  • Shares transferred following marriage or entry into a civil partnership
  • Shares transferred following divorce or dissolution of a civil partnership
  • Shares held in trust transferred from one trustee to another
  • Transfers that a liquidator makes as settlement to shareholders when a business is wound up 
 
Rate(s) Structure
  • For agreements to transfer securities generally: 0.5 % of the purchase price.
  • For securities converted into depository receipts: 1.5 % of the purchase price.
  • For securities transferred to a clearance service operator or its nominee: 1.5% of the purchase price or value.
  • For securities issued to a non-EU/non-EEA clearance service operator or its nominee 1.5% of the purchase price or value.
 
Tax due date

Within 30 day of transfer.

 
Tax collector

Payment to the authorities is generally made on behalf of the buyer by an operator of an electronic settlement service about one month after the deal is made.

 
Special features

Refunds:

Tax is repaid or the charge cancelled where an agreement is followed within six years by an instrument of transfer which is stamped (or exempt from stamp duty).

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d214c

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,955.00 GBP 0.12
2011 2,309.00 GBP 0.14
2010 2,506.00 GBP 0.16
2009 2,676.00 GBP 0.18
2008 3,221.00 GBP 0.21
2007 3,649.00 GBP 0.25
2006 3,317.00 GBP 0.24
2005 2,639.00 GBP 0.20
2004 2,337.00 GBP 0.19
2003 2,143.00 GBP 0.18
2002 2,414.00 GBP 0.21
2001 2,868.00 GBP 0.27
2000 4,195.00 GBP 0.41

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