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When ‘stock or marketable securities� or ‘chargeable securities� are transferred for consideration, a stamp duty or Stamp Duty Reserve Tax (SDRT) charge will generally arise at the rate of 0.5 per cent by virtue of FA99/SCH13/PARA 1-3 and FA86/S87.

But when, for stamp duty purposes, ‘relevant securities�, or, for SDRT purposes, ‘chargeable securities�, are transferred to a depositary receipt issuer or its nominee in return for the issue of a depositary receipt by the depositary, a stamp duty or SDRT charge at the higher rate of 1.5 per cent may arise. See STSM053000 for details of the Higher Rate charge.

For the meaning of ‘relevant securities� and ‘chargeable securities�, see STSM053020 and STSM053030.