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HMRC internal manual

Stamp Taxes on Shares Manual

From
HM Revenue & Customs
Updated
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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