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HMRC internal manual

Stamp Taxes on Shares Manual

HM Revenue & Customs
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Exemptions and reliefs: reliefs: stamp duty group relief - bars to relief and failed claims

Summary of the bars to relief

Summarising briefly, relief is not available where any of the following applies:

  • there is no letter of claim
  • the parties are individuals
  • one of the parties is not associated (partial relief is not to be given)
  • the 75% relationship is not present
  • no beneficial interest passes, unless the document completes the sale of the beneficial interest
  • the transferor company is in liquidation
  • shares are not registered in the name of the company at the date of the document
  • under an arrangement, the consideration has been provided directly or indirectly by a third party
  • as part of an arrangement relationship shares are sold
  • the relationship does not meet the requirements of ICTA88/S413(7) as supplemented by ICTA88/SCH18

Failure of a Claim for relief

If the customer fails to provide any of the necessary information then the outstanding information should be requested, generally by letter.

If the claim fails because a condition for relief is not satisfied the customer is to be advised in writing accordingly. You should tell the customer how much duty (and any penalty) needs to be paid for the document(s) to be duly stamped or, if that is not possible, (for example because the consideration consists of shares which need to be valued) what further information is needed before the duty can be calculated. The customer should also be advised of the stamp duty reserve tax charge that arises if the document is not stamped.