STSM022040 - Scope of stamp duty on shares: stamp duty: adjudication, stamps and reliefs: reasons for adjudication

There are many reasons why adjudication could be requested. These include:

  • the applicant requires certainty about the amount of Stamp Duty, if any, payable
  • the applicant disputes HMRC's calculation of Stamp Duty and wishes to appeal it. See STSM022090 for more information on the Stamp Duty appeal process
  • the applicant wants to satisfy a third party that the instrument is duly stamped
  • a company registrar has demanded that the customer has the instrument adjudicated before it is registered to ensure there will be no breach of Section 17 of the Stamp Act 1891, and so the registrar will not be charged a penalty (see STSM141030)
  • when Stamp Duty is charged by reference to the value of some stock or marketable securities which are part or all of the chargeable consideration, adjudication allows this value to be agreed (but only for the purpose of calculating the Stamp Duty on that transaction on a non-prejudicial basis)
  • a document has been produced in evidence and the Court has required some party or his solicitor to undertake to have it stamped
  • the instrument of transfer is a Court Order which requires Adjudication
  • a relief or exemption is claimed, and adjudication is a condition of the legislation (see STSM022100)