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United Kingdom
United Kingdom
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Stamp duty reserve tax or SDRT meaning
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What does Stamp duty reserve tax or SDRT mean?
Stamp duty reserve tax (SDRT) is the UK tax charged on agreements (oral or written) to transfer chargeable securities for consideration. It is a statutory regime in the Finance Act 1986. The principal charge is 0.5% on agreements to transfer chargeable securities (including UK shares and certain interests) for money or money’s worth, subject to statutory exemptions and reliefs. A higher rate of 1.5% applies to transfers of chargeable securities into depositary receipt systems or clearance services, except where the transfer is integral to an issue of share capital; following case law and subsequent legislation, issues (and transfers integral to capital-raising) are not subject to the 1.5% charge.
Stamp duty and SDRT often overlap (for example, on a transfer of certificated UK shares). To prevent double taxation, the SDRT charge is cancelled in most cases if the agreement is completed by a duly stamped instrument of transfer within six years.
SDRT applies consistently across England & Wales, Scotland and Northern Ireland and is administered by HMRC. In practice, where settlement occurs through CREST, SDRT is generally collected via the system. The Republic of Ireland has no SDRT; it levies separate stamp duty on share transfers.
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View the related Practice Notes about Stamp duty reserve tax or SDRT
PRACTICE NOTES
COVID-19: Archived overview of UK tax measures—CJRS, SEISS, VAT, SDLT/LBTT/LTT, international and tribunal changes
ARCHIVED: This archived Practice Note, which reviews the tax measures introduced by the government in response to the coronavirus pandemic and other tax steps of particular relevance, is not updated and is provided for background information only The government introduced a series of measures in response to the coronavirus (COVID-19) crisis, either specific to the UK tax regime or administered by HMRC. HMRC also published a business support finder tool to help businesses and the self-employed swiftly identify what financial assistance was available. See: Find coronavirus support for your business. For ease of use, this Practice Note is divided into: EMPLOYMENT SELF-EMPLOYMENT TRADING LOSSES VAT STAMP TAXES INTERNATIONAL TAXES MANAGEMENT AND LITIGATION INCENTIVISED INVESTMENT EMPLOYMENT Coronavirus job retention scheme (CJRS)—CLOSED The coronavirus job retention scheme (CJRS) offered support to employers with a UK payroll by way of a grant to help meet salary costs for ‘furloughed’ employees during the pandemic. The initial iteration...
21 May
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PRACTICE NOTES
UK SDRT and stamp duty on securities: scope, primacy, cancellation by duly stamped instruments, exceptions, sub‑sale pitfalls, CREST concessions, and forthcoming STC reforms
FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework From 2027, stamp duty and SDRT will be replaced by a single, self-assessed tax on securities—the securities transfer charge (STC)—which will be paid and reported via a new online portal. The STC’s design will broadly reflect the proposals set out in the 2023 consultation. Finance Bill 2026 (FB 2026) provides, with effect from Royal Assent, a power for secondary legislation so taxpayers can trial the new digital service by self-assessing their stamp taxes on securities liabilities and submitting transactions electronically. For further information on the modernisation of stamp taxes on securities, refer to News Analyses: Budget 2025—Tax analysis—Stamp and transfer taxes, Tax update spring 2025—Stamp taxes on shares modernisation, Tax update spring 2025—Tax analysis—Stamp and transfer taxes, TAMD 2023—Stamp taxes on shares modernisation, TAMD 2023—consultation—stamp taxes on shares and Tax Administration and Maintenance Day—27 April 2023—Stamp and transfer taxes...
22 May
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PRACTICE NOTES
UK stamp duty and SDRT in rights issues: nil paid rights, renunciations, lapses, fractional entitlements, new share issues, CREST, depositary/clearance systems, and subsequent share transfers
Practice Note This Practice Note sets out the principal stamp duty and stamp duty reserve tax (SDRT) consequences of a rights issue; specifically, it considers the stamp duty and/or SDRT treatment of: the issue of nil paid rights, any transfer or renunciation of those rights, the lapse of those rights, and the issue of the new shares. It is prepared on the basis that the securities offered under the rights issue are shares. However, this Practice Note does not apply to unlisted shares admitted to trading on a recognised growth market, such as AIM, because such shares are, in any event, exempt from stamp duty and SDRT. For more information on this exemption, see Practice Note: Growth market exemption from stamp duty and SDRT. In broad terms, a rights issue is an offer of new shares at a discount to existing shareholders in respect of, and in proportion to, their existing shareholdings...
22 May
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