Jurisdiction(s):
United Kingdom

Modernising UK stamp taxes on shares: single self-assessed securities tax from 2027, portal/UTRN process, deferred consideration rules, substantial performance trigger, penalties, and 1.5% higher rate retained

Published on: 13 May 2025

Published by a LexisNexis Tax expert

Legal News

Article summary

What are the key proposals for replacing stamp duty and SDRT with a single, self-assessed, tax on securities?

The core government proposal is to replace the existing split between stamp duty on paper instruments and SDRT on electronic transfers with a compulsory, single, self-assessed tax on securities. Crucially, the present framework is complicated by the fact that SDRT is not confined to electronic movements; as a result, there is a relatively intricate interplay between SDRT and stamp duty where paper transfers are concerned. By contrast, a single charge would apply uniformly to securities transactions, removing that interaction and the related ambiguity seen under the dual system.

From a practical standpoint, a persistent problem with the stamp duty rules—originating at least as far back as the Stamp Act 1891, which still has effect—is the delay imposed on company registrars. After a share transfer, they must wait for a number of weeks before they are able to record the change in the company’s books, because the register of members cannot be updated until HMRC has stamped the relevant instruments of transfer, namely stock transfer forms...

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