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HMRC internal manual

Stamp Taxes on Shares Manual

Stamp duty and SDRT Administration: SDRT Administration: liable person and accountable person

Liable person

FA86/S91 says that the person who is liable for Stamp Duty Reserve Tax (SDRT) charged under the principal charge of section 87 is the person described as B in that section. This is the transferee, or to put it another way, the purchaser.

Accountable person

However, the Stamp Duty Reserve Tax Regulations 1986 (SI 1986/1711) make an “accountable person” responsible for accounting for the SDRT. Under regulation 4 the accountable person has to notify HMRC of an SDRT charge and to pay the tax on or before the “accountable date” (unless “different arrangements” are made with HMRC).

In respect of the principal SDRT charge under FA86/S87, the accountable person is usually an exchange member or, failing that, a “qualified dealer” (as defined in regulation 2). The definition in regulation 2 of SI 1986/1711 sets out the order of priority as follows:

  1. the exchange member (if any) buying the stock for his client,
  2. the exchange member (in any) acting for the seller,
  3. the qualified dealer (if any) buying stock for his client,
  4. the qualified dealer (if any) acting for the seller,
  5. the buyer, that is, the liable person.

There are different rules in regulation 2 for the other (not FA86/S87) SDRT heads of charge.