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Stamp Duty

If an instrument, for example a stock transfer form, is executed to transfer (on sale or otherwise than on sale) relevant securities (see STSM053020) to a depositary receipt issuer or clearance service, then if the instrument is presented to HM Revenue and Customs (HMRC) along with any duty payable within 30 calendar days of execution, no interest or penalty will be charged.

Stamp Duty Reserve Tax (SDRT) - Accountable Date

Where no instrument / stock transfer form is, or it is anticipated will be executed on which Stamp Duty will be paid and duly stamped within 60 days after the date of the agreement, the accountable person (the depositary receipt issuer (or its nominee) or clearance service (or its nominee)), is required under the provisions of Regulations 2 and 4 of the SDRT Regulations 1986 (SI 1986/1711), on or before the ‘accountable date�, to:

• give notice to HMRC of each transaction involving chargeable securities (see STSM053030) where a charge to SDRT arises; and
• pay the tax due

The accountable date for Regulation 4 purposes is defined as being the seventh calendar day following the end of the month in which the charge arose.

For example, any unconditional agreement to transfer chargeable securities undertaken during the month of April has to be notified by the accountable person, along with payment of the tax due, on or before 7 May.

If the transaction could have been reported to a regulator through CREST (and the tax paid at the same time), but this was not done, then interest is chargeable from 14 days after the relevant transaction.

Occasionally, someone other than the accountable person as set out in the legislation may wish to account for the SDRT due. In such cases, the person is required to formally notify HMRC that they will account, under the provisions of Regulation 4, for the SDRT due on behalf of the accountable person. These arrangements require written authority from HMRC.