STSM041120 - Exemptions and reliefs: exemptions: sales of Bearer securities - exemptions
There are several exemptions from the stamp duty under the bearer instrument head of charge, as follows.
- There is no duty on a bearer instrument issued outside the UK in respect of a loan in a currency other than sterling and which is not offered for subscription in the UK or offered for subscription with a view to an offer for sale in the UK of securities in respect of the loan.
- There is no duty on an instrument constituting or used for transferring stock (other than units in a unit trust) if that stock is itself exempt from all stamp duties on transfer.
- There is no duty on bearer instruments which are exempt under FA71/S64 or Section 5 of the Finance (Northern Ireland) Act 1971, which abolished the old mortgage, bond, debenture, covenant duty.
- There is no duty on bearer instruments exempt under FA89/S173 which abolished the duty on life policies and superannuation annuities.
- There is no bearer instrument duty on renounceable letters of allotment, letters of rights or other similar instruments where the rights are renounceable not later than 6 months after the issue of the letter or instrument.
Exemption for Non-Sterling Bearer Instruments
See STSM064050 Bearer instruments denominated in currency other than United Kingdom currency STSM067040 Non-sterling currency United Kingdom bearer instruments.
STSM067050 United Kingdom loan capital bearer instruments denominated in currency other than sterling STSM067060 Depositary Receipts Issuers/Clearance Services- Non-sterling currency United Kingdom bearer instruments.
Transfers of loan capital
See STSM021220