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HMRC internal manual

Stamp Taxes on Shares Manual

HM Revenue & Customs
, see all updates

Stamp Duty and Stamp Duty Reserve Tax administration: Stamp Duty Reserve Tax administration: introduction

SDRT Administration

The responsibility for paying Stamp Duty Reserve Tax (SDRT) to HMRC rests with the “accountable person” as defined in the SDRT Regulations 1986 (SI 1986 No 1711). This is usually the broker acting for the purchaser of the shares.

SDRT is administered by HMRC. See STSM141010 for details of how HMRC Stamp Taxes is organised.

Central collection and reporting through CREST

Regulation 4 of the Stamp Duty Reserve Tax Regulations 1986 (SI 1986/1711) makes the “accountable person” responsible for giving notice to HMRC of a charge to tax and for paying the tax due - see STSM142060. In practice, most SDRT is collected and reported centrally through CREST (see STSM131000) and this is normally simplest and most efficient for all concerned. Much of the detail of the administration of SDRT in CREST, and of market practice generally, is embodied in CREST publications.

Where transactions are properly reported to HMRC through CREST, so that HMRC receives information about them and any SDRT due, this discharges the accountable person’s requirement to notify HMRC of these transactions or account for the tax separately. However if the SDRT is not accounted for through CREST (even if an attempt was made to use CREST to account for it) then Regulation 4 applies.