Business tax – guidance

Stamp Duty Reserve Tax: getting a refund

How to apply for a refund if you pay too much Stamp Duty Reserve Tax (SDRT).

Overview

If you pay too much SDRT on a transaction because you made a mistake, you can claim a refund from HM Revenue and Customs (HMRC).

Whether the SDRT was paid through the CREST system or by some other means, you need to write to HMRC to apply for a refund.

When the amount input to CREST was incorrect

If you’ve paid too much SDRT on a share transaction made through the CREST electronic system you can get a refund.

To get a refund you’ll need to write to HMRC and provide the following information:

  • you must provide us with a signed letter of claim, this can be in PDF format
  • you must tell us your CREST participant ID, this must be the same as the participant ID that paid the tax in CREST, if these don’t match, your claim may not be paid
  • the CREST transaction ID (identifier), this identifies the transaction for which you want a SDRT refund (note that it is not the stamp transaction ID)
  • the amount of refund you are applying for - in the case of more than one transaction make sure you state the amount of refund required for each individual CREST transaction ID
  • the repayment code - choose a repayment code from the tables below to indicate why a refund is due, if you’re claiming a refund for more than one transaction, choose the appropriate code for each

If the person who paid the SDRT gives you written authority to make a claim and gives up their rights over the money, we can process the claim.

Repayment code - exemption

Code Reason
1 No change of beneficial owner
2 Charity
3 Intermediary Relief (principal purchase)

Repayment code - incorrect or missing information input to CREST

Code Reason
4 TSS Flag
5 Trade System of Origin or Stock Lending Relief
6 Market sale or American depositary receipt conversion back to underlying shares
7 Incorrect consideration
8 Agent indicator

Repayment code - double SDRT payment

Code Reason
9 Cancelled or rebooked trades, or duplicated trades
10 Bulk or split payments, paid both in and outside CREST, paid by both parties
11 Other reasons not listed

Claiming a refund for 15 or more transactions

If you claim for 15 or more transactions in a single application, you should put the information into a spreadsheet and email it to HMRC.

HMRC suggests using the format below for your spreadsheet.

Example spreadsheet format for multiple refund claims

CREST transaction ID Claim Date Repayment code
ABC0225466 £33.22 12/02/03 1
BC00605484 £784.63 01/01/03 2
FG10569882 £12.54 03/11/00 10
ADC0562337 £2120.33 04/11/00 8

You can email your completed spreadsheet to mailbox.sdrt@hmrc.gsi.gov.uk.

CREST refunds and HMRC accuracy checks

HMRC will send a refund, plus any interest due, for all claims they receive with a valid CREST transaction ID. They won’t make any detailed accuracy checks on your claim there and then. But they will check a sample of the claims they receive in detail to make sure they’re correct.

HMRC may need to contact you at a later date to request more information to support your claim.

Other refunds

To get a refund for a transaction that wasn’t made through CREST you’ll need to write to HMRC and explain why you think a refund is due. You need to provide:

  • the original receipt for the SDRT that was paid if one was issued to you
  • the trade date
  • the names of the parties involved
  • information about why a refund is due, along with any supporting documents that confirm this
  • how the SDRT was paid
  • when the SDRT payment was made

Before HMRC make any refund they’ll check the details of your claim. They may request more supporting information if you didn’t provide enough detail when you first claim the refund.

If HMRC agrees the refund they’ll repay the SDRT, usually along with interest, from the date when the tax was paid.

Refunds for claims of £150,000 or more

If the total amount of the refunds you’re applying for is £150,000 or more you can ask for payment by CHAPS electronic transfer. You’ll need to include your bank details with your claim.

Where to send your refund request

If you’re making a claim for a refund of SDRT paid in CREST you can send an email including a signed letter of claim to the mailbox.sdrt@hmrc.gsi.gov.uk or by post to HMRC Birmingham Stamp Office.

You can use these addresses for all refund claims, whether the transaction was made through CREST or not. You should mark your letter Stamp Duty Reserve Tax.

Time limit for claiming a refund

You can get a refund of overpaid SDRT as long as you claim a repayment within 4 years of whichever is the later of:

  • the date when SDRT became due
  • the date when the SDRT was actually paid