STSM041020 - Exemptions and Reliefs: exemptions: securities exempt from stamp duty are generally exempt from Stamp Duty Reserve Tax (SDRT)
Although the scope of 鈥榗hargeable securities鈥� (for Stamp Duty Reserve Tax (SDRT) purposes) has much in common with that of 鈥榮tock and marketable securities鈥� (for stamp duty purposes) there are differences.
FA86/S99(3) defines 鈥榗hargeable securities鈥� for the purposes of a charge to SDRT (see STSM031090). Under the provisions of section 99(5), 鈥榗hargeable securities鈥� will not include securities the transfer of which is exempt from all stamp duty. Broadly speaking, if a transaction is exempt from stamp duty then it will also be exempt from SDRT. Securities which are exempt from stamp duties, such as gilts (FA99/SCH13/PARA24) and loan capital (FA86/S79), are exempt from SDRT.