Introduction to Stamp Duty on shares and Stamp Duty Reserve Tax (SDRT): more about Stamp Duty and SDRT: Stamp Duty Reserve Tax - interaction with CREST
The CREST system is operated by Euroclear UK & Ireland Ltd., which is authorised under Treasury regulations to operate a ‘relevant system’ for settling transactions in uncertificated (or ‘dematerialised’) securities. .It deals with the vast majority of all transactions which fall within the Stamp Duty Reserve Tax (SDRT) regime. When a transaction is entered into a CREST flag must be selected to either indicate the rate at which SDRT is to be charged or why no such charge arises.
CREST automatically collects any SDRT due from its participating members and accounts for it to HMRC. It also provides a daily data feed of all transaction data, including those transactions where no SDRT is payable.