Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Stamp Taxes on Shares Manual

From
HM Revenue & Customs
Updated
, see all updates

Introduction to Stamp Duty on shares and Stamp Duty Reserve Tax (SDRT): Stamp duty rates: Stamp Duty - rates for particular transactions

Bearer Instruments are defined at FA99/Sch15/Para 3 and include receipts to bearer issued by depositaries. All the following references are to FA99/Sch15.

Stamp Duty is chargeable:

  • on the issue of a bearer instrument in the United Kingdom (UK) (paragraph 1(1)(a))
  • on the issue of a bearer instrument outside the UK by or on behalf of a UK company (paragraph 1(1)(b))

Stamp Duty is also chargeable:

  • on the transfer in the UK of the stock constituted by or transferable by means of a bearer instrument if duty was not chargeable on the issue of the instrument and;
  • duty would be charged at the standard rate if it were transferred by another instrument which was not a bearer instrument (paragraph 2(a)) or
  • the stock constituted by or transferable by means of a bearer instrument consists of units under a unit trust scheme

On all of the above, subject to the exemptions in Part II of Schedule 15, the rate of duty is 1.5% of the market value of the stock constituted by or transferable by means of the instrument unless the following applies.

In the case of:

  • a deposit certificate in respect of stock of a single non-UK company or
  • an instrument issued by a non-UK company that is a bearer instrument by usage (and is not within the definition of bearer instrument mentioned at the top of this page); the rate of duty is 0.2% of the market value of the stock constituted by or transferable by means of the instrument.

Further information can be found at STSM063010.