How to apply for a refund if you pay too much Stamp Duty Reserve Tax (SDRT).
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’ll 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:
- the CREST transaction ID (identifier) - this identifies the transaction for which you want a SDRT refund. Note that it is not the straight through processing 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 trade date. This is the date of the agreement to transfer shares
- 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
- your application reference number, if you have one
Repayment code - exemption
|1||No change of beneficial owner|
|3||Intermediary Relief (principal purchase)|
Repayment code - incorrect or missing information input to CREST
|5||Trade System of Origin or Stock Lending Relief|
|6||Market sale or American depositary receipt conversion back to underlying shares|
Repayment code - double SDRT payment
|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|
You can email your completed spreadsheet to firstname.lastname@example.org.
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. If they do, they’ll normally contact you within 60 days of the date when you applied for a refund.
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 should provide the following details:
- the original receipt for the SDRT that was paid
- the trade date
- the names of the parties involved
- information about why a refund is due, along with any supporting documents that confirm this
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.
CHAPS 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
Send your repayment request to HMRC Birmingham Stamp Office or you can e-mail it to email@example.com.
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