STSM011005 - Introduction to Stamp Duty on shares and Stamp Duty Reserve Tax (SDRT): Stamp Duty and SDRT basics: Stamp Taxes on Shares Modernisation
Overview and timeline
The Office for Tax Simplification (OTS) issued a report in 2017, titled ‘Stamp duty on paper documents: a way forward to reform, digitise and simplify’, in which it recommended the modernisation and digitalisation of Stamp Duty. The report can be found here.
Following the 2017 OTS report, the government consulted on the consideration rules for Stamp Taxes on Shares (Stamp Duty and Stamp Duty Reserve Tax (SDRT) – collectively STS) in 2018. As noted in the 11 July 2019 summary of responses, which can be found here, the government concluded that changing a single aspect of the regime would be ineffective without considering the STS framework as a whole.
In July 2020 HMRC published a Call for Evidence on the guiding design principles and potential options for modernising the STS framework. The call for evidence and the summary of responses can be found here.
In November 2021 a joint HMRC and industry Working Group was established. This helped to inform the proposals contained in a 2023 consultation, which sought views on proposals to modernise the STS framework, and can be found here. The summary of responses to the consultation was published on 28 April 2025, and can be found here.
On 28 April 2025, a consultation was published on proposals to modernise the 1.5% higher rate STS charge, which closed on 21 July 2025 and can be found here.
On 26 November 2025, a policy paper was published in respect of legislation to be introduced in Finance Bill 2025-26, providing a power enabling HM Treasury to make changes to STS 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 policy paper can be found here. The measure was introduced as section 277 of FA2026 (which can be found here), which received Royal Assent on 18 March 2026.