STSM142010 - Stamp Duty and Stamp Duty Reserve Tax administration: Stamp Duty Reserve Tax administration: introduction

SDRT Administration

The responsibility for notifying and paying Stamp Duty Reserve Tax (SDRT) to HMRC rests with the “accountable person” as defined in the Stamp Duty Reserve Tax Regulations 1986 (SI 1986/1711). This is usually the broker acting for the purchaser of the shares.

Central collection and reporting through CREST

Regulation 4 of SI 1986/1711 makes the “accountable person” responsible for giving notice to HMRC of a charge to tax and for paying the tax due - see STSM142060.

In practice, most SDRT is collected and reported centrally through CREST (see STSM131000) which is operated by Euroclear UK & International Limited (EUI).

Where transactions are reported to HMRC through CREST, so that HMRC receives notification and payment of any SDRT due, this discharges the accountable person’s requirement to notify HMRC of these transactions or account for the tax separately. However, if the SDRT is not accounted for through CREST (even if an attempt was made to use CREST to account for it) then then it remains the accountable person’s responsibility to notify and pay HMRC, owing to Reg.4 SI 1986/1711.