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HMRC internal manual

Stamp Taxes on Shares Manual

Depositary receipt and clearance services: clearance services: higher rate charge on clearance service providers

When ‘stock or marketable securities’ or ‘chargeable securities’ are transferred for consideration, a stamp duty or Stamp Duty Reserve Tax (SDRT) charge will generally arise at the rate of 0.5 per cent by virtue of paragraphs 1 to 3 of FA99/SCH13 and FA86/S87.

But when, for stamp duty purposes, ‘relevant securities’, or, for SDRT purposes, ‘chargeable securities’, are transferred to an operator of a clearance service, a stamp duty or SDRT charge at the higher rate of 1.5 per cent may arise.

For the meaning of ‘relevant securities’ and ‘chargeable securities’, see STSM053020 and STSM053030.