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HMRC internal manual

Stamp Taxes on Shares Manual

Stamp duty and SDRT Administration: SDRT Administration: interest and repayments

Interest on SDRT paid late

The interest provisions for Stamp Duty Reserve Tax (SDRT) are mostly contained in Statutory Instrument 1711 of 1986. If SDRT is paid late, then interest is charged from the accountable date (STSM142130) to the date of payment under TMA70/S86 (as applied to SDRT in SI 1986/1711). There is no general power to mitigate interest which is due under section 86, but de minimis amounts are not pursued.

Current and historic rates of interest are available on the “HMRC Interest Rates” page on the HMRC website.

Repayment of SDRT

If SDRT is overpaid then any repayment of SDRT will be made with interest from the date that it was paid, under regulations 11 and 14. Any such claim for repayment has to be made to HMRC Stamp Taxes within four years of the accountable date, or the date of payment if later.

If a payment of SDRT is franked by having an instrument duly stamped (STSM142030) within six years of the date of the agreement, then a claim for repayment of the SDRT can be made within that six year period. Repayment interest will be due from the date the SDRT was first paid (FA86/S92(2)).

Where the SDRT is paid through CREST, the date for repayment interest purposes is the date the Participant’s account is debited in CREST.

The full SDRT will be repaid, regardless of the amount, but interest will only be paid if the amount of the SDRT repaid is £25 or more. No interest is added to SDRT repayments under £25.

There is practical advice on making SDRT repayment claims in the Stamp Taxes area of the HMRC website.