HMRC internal manual

Stamp Taxes on Shares Manual

STSM022140 - Scope of stamp duty on shares: stamp duty: adjudication, stamps and reliefs: acquisitions by charities

Overview

Section 129 FA1982 provides exemption from Stamp Duty for transfers to any of the following:

  • a charitable company
  • the trustees of a charitable trust
  • the Historic Buildings and Monuments Commission for England (per section 46 FA1983)

Charity

‘Charity’ is defined by Schedule 6 FA2010, paragraph 1. This states that a charity is a body of persons or trust that:

  • is established for charitable purposes only
  • is subject to the control of a court in the exercise of that court’s jurisdiction with respect to charities. In the UK this is the High Court, the Court of Session in Scotland or the High Court in Northern Ireland. In a country outside the UK this means a court with a corresponding jurisdiction
  • has, where required to by the laws of its territory, complied with any requirement to be registered
  • is managed by ‘fit and proper’ persons

Schedule 6 FA2010, paragraph 2, defines ‘charitable company’ as a charity that is a body of persons, and ‘charitable trust’ as a charity that is a trust.

How to claim the exemption

Although an exemption rather than a relief, owing to the requirements of section 129 (2) FA1982 the exemption must be claimed by presenting the relevant instrument to HMRC for adjudication, in order for the instrument to be duly stamped. Practical information on how to submit a claim is available on gov.uk.