Modernisation of the Stamp Taxes on Shares Framework
Published 26 November 2025
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Who is likely to be affected
Individuals, businesses, tax professionals and other organisations involved in the buying and selling of UK securities.
General description of the measure
The measure introduces a power allowing HMRC to make regulations to enable testing of a new digital service for self-assessing and paying Stamp Duty and Stamp Duty Reserve Tax (SDRT) (collectively Stamp Taxes on Shares (STS)) on the transfer of securities.
Policy objective
The STS modernisation project seeks to replace Stamp Duty and SDRT with a single tax on transfers of securities — the Securities Transfer Charge (STC). The government is also developing a digital service to be used by taxpayers for self-assessing and paying the STC on the off-market transfer of securities, which will digitise and simplify reporting and payment processes. Regulations made under the power introduced by this measure will apply amendments to existing STS legislation to facilitate testing of the digital service.
Background to the measure
On 2 March 2017, the Office for Tax Simplification issued a report recommending the modernisation and digitisation of Stamp Duty, and from 7 November 2018 to 30 January 2019, the government ran a consultation on the consideration rules for STS. This led to a Call for Evidence on the guiding design principles and the potential options for modernising the STS framework. The Call for Evidence ran from 21 July 2020 to 13 October 2020.
In November 2021, the government established a stakeholder Working Group to consider the modernisation reforms. The government published two consultations on the potential reform of areas of the STS framework on 27 April 2023 and 28 April 2025. The government response to the 2023 consultation was published on 28 April 2025, and the government response to the 2025 consultation will be published in due course.
Detailed proposal
Operative date
The measure will have effect from the date of Royal Assent to Finance Bill 2025-26. This measure will be used by HM Treasury to make regulations amending Stamp Duty and SDRT. Regulations will be published in due course.
Current law
The current law for Stamp Duty can be found in:
- The Stamp Duties Management Act 1891
- Stamp Duties Act 1891
- Finance Act 1895
- sections 67 to 2A Finance Act 1986
- Schedule 13 of Finance Act 1999
Part IV of Finance Act 1986 sections 86 to 99 set out the main scope and charging provisions for SDRT.
Proposed revisions
Legislation will be introduced in Finance Bill 2025-26, providing a power enabling HM Treasury to make changes to Stamp Duty and SDRT legislation. The power will be used by HM Treasury to introduce secondary legislation which will allow HMRC to change the existing rules to allow taxpayers taking part in testing to self-assess their STS obligations and report transactions electronically via a digital service.
The changes to be introduced will be time limited to the duration of the testing of the digital service with detailed rules to be set out in a statutory instrument to be laid at a later date.
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil |
This measure is not expected to have an Exchequer impact.
Macroeconomic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
Taking a power to enable testing of the digital service for the STC is not expected to have any impact on individuals, households, or families. Any future impacts of subsequent policy measures will be fully examined and detailed.
Equalities impacts
It is not anticipated that there will be disproportionate impacts on those in groups sharing protected characteristics from taking a power to enable testing of the digital service for the Securities Transfer Charge. Any future impacts of subsequent policy measures will be fully examined and detailed.
Administrative impact on business including civil society organisations
Taking a power to enable testing of the digital service for the STC is not expected to have any impact on businesses or civil society organisations. Any future impacts of subsequent policy measures will be fully examined and detailed.
Operational impact (£ million) (HMRC or other)
It is not expected that there will be any operational costs in implementing this measure as this is a power to make enabling legislation for testing a new digital service.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure is taking a power and so no monitoring and evaluation will be required.
Further advice
If you have any questions about this change, contact the HMRC Stamp Taxes team by email stamptaxes.budgetfinancebill@hmrc.gov.uk.