Introduction to Stamp Duty on shares and Stamp Duty Reserve Tax (SDRT): how to pay: wait and see - provisional stamping
If documents are required for another purpose whilst waiting for stamping on the “wait and see” basis, an application may be made for them to be stamped on a provisional basis. To do this HMRC must:
- have agreed that the “wait and see” basis is appropriate
- have received a sum representing a reasonable estimate of the duty which will eventually be payable
- have a written undertaking that when the consideration is determined the documents will be returned without undue delay, and that any additional duty payable will be paid at that time.
When returning the documents stamped on a provisional basis HMRC will, if not already done, advise the reference to use when resubmitting the documents.
It is important that the undertaking is strictly adhered to as the stamping process is not complete until the documents are returned to HMRC, even if the estimate and the outcome do not cause the duty payable to vary. In particular, if adjudication has been requested under the provisions of SA1891/S12, the adjudication stamp will not be impressed when documents are stamped on a provisional basis as to do so would indicate that the adjudication process is complete.
The interest position is exactly the same as under “wait and see”. Interest is due on additional duty payable and will be added to repayments of duty overpaid.
HMRC Stamp Taxes would usually expect completion accounts to be agreed within three months of finalisation but does accept that the process may occasionally take longer. To avoid unnecessary reminders being sent HMRC should be informed if there is likely to be undue delay in accounts being agreed.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)