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HMRC internal manual

Stamp Taxes on Shares Manual

Bearer instruments: bearer instrument duty - compliance: interest charge - transfer of bearer stock

If the provisions for stamping transfers of stock chargeable under paragraphs 2 and 23 of FA99/SCH15 are not complied with, then the terms of paragraph 23(4) of Schedule 15 makes provision for a failure to do so.

If the instrument is not duly stamped, any person who in the United Kingdom transfers any stock by or by means of the instrument or is concerned as broker or as agent in any such transfer is liable to pay:-

  • the duty chargeable; and
  • interest on the unpaid duty from the date of transfer in question until the duty is paid.

If part payment is made, interest will cease to accrue in respect of the amount paid, from that date. It is charged at the same rate as interest on all other stamp duty paid late. The amount calculated is rounded down to the nearest multiple of £5.

No interest is payable if the amount of the interest is less than £25.

For advice on the raising of a penalty charge, see STSM066030