Scope of Stamp Duty Reserve Tax (SDRT): chargeable securities - general
The principal charge to Stamp Duty Reserve Tax (SDRT) applies where there is an agreement to transfer chargeable securities.
‘Chargeable securities’, as defined in FA86/S99, include:
- stocks, shares or loan capital
- interests in, or in dividends or other rights arising out of securities
- options to acquire and rights to allotment of or to subscribe for securities
- units under a unit trust scheme
‘Chargeable securities’ as defined in FA1986/S99 do not include:
- securities which are exempt from all stamp duties
- securities which relate to underlying securities which are exempt, such as gilts and non-convertible loan capital
- loan capital where the return bears an inverse relationship to results
- interests in depositary receipts for stocks or shares, which will instead be subject to the 1.5 per cent charge
- are issued or raised by a company incorporated outside the UK (and with no UK register)
- are not paired with shares in a UK company (FA86/S99 (4))
- are issued or raised by a Societas Europaea (SE) with a registered office outside the UK (FA86/S99 (4A))
- units in a non-UK or exempt trust.