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HMRC internal manual

Stamp Taxes on Shares Manual

Introduction to Stamp Duty on shares and Stamp Duty Reserve Tax (SDRT): Stamp duty - payment and penalties: the consequences of not stamping a document

There is nothing in Stamp Duty legislation to compel the stamping of a document, but a document that is stampable and has not been cannot be used for any purpose except as evidence in criminal proceedings. Amongst other things it cannot be used:

  • to alter a register
  • to prove ownership
  • as security for a loan
  • to comply with legal requirements.

In addition, should the subject matter of the instrument be chargeable securities for Stamp Duty Reserve Tax (SDRT) purposes then there is an SDRT charge which has not been discharged (see STSM015020) and consequently interest and penalties will accrue in respect of that tax debt. SDRT has compliance powers and HMRC can enforce payment of the tax together with any penalties and interest.

The longer a stampable document remains unstamped, the higher the penalty and interest charges that will need to be paid when the document is finally presented for stamping.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)