Scope of Stamp Duty Reserve Tax (SDRT): chargeable securities - interests, dividends and other rights
Interests in and dividends or other rights arising out of securities:FA86/S99(3)(b)
‘Chargeable securities’ also includes rights arising directly out of securities. For example, a charge to SDRT will arise on the following agreements:
- W sells his interest in shares which are held on his behalf by a nominee
- X sells rights to dividends issued by Y Ltd, in which X is a shareholder
- Z purchases chargeable securities under an instalment arrangement and sells the letter of acceptance during the renunciation period.