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It looks like the internet browser you are using is out of date. Please update your browser for the best experience. The process to follow is explained below. For shares bought electronically, or without a stock transfer form, please read the guide 'Stamp Duty Reserve Tax'. You also don't have to tell HMRC about the transaction. The address of the registrar is on the share certificate. The registrar will then issue you with your own share certificate. The rules above have applied since 13 March This means you have to send HMRC the stock transfer form for stamping, along with your payment.
The amount of Stamp Duty you pay is based on the 'chargeable consideration' you give for the stocks or shares. The chargeable consideration can be:. You pay Stamp Duty at the rate of 0. The Stamp Duty rate is 0. Stamp Duty reliefs or exemptions and how to apply. When you complete a stock transfer form you should give all the details of the sale including the shares being transferred, the consideration, the buyer and the seller etc. If you don't give any consideration for the shares you should enter 'Nil' as the consideration money.
If the transfer is exempt from Stamp Duty or no chargeable consideration is given for the transfer you need to complete one of the certificates on the back of the stock transfer form.
The certificate you need to complete depends on the facts. You should complete the second exemption certificate on the back of the stock transfer form in the following situations:. The buyer normally pays stamp duty on shares. If you are buying shares from a broker, they will absorb the cost of stamp duty within the share contract.
For those individuals and businesses trading shares without a broker, it is your responsibility to calculate and pay the stamp duty within 30 days of the transaction.
Yes — there are a number of ways you can save paying stamp duty on shares. You are also exempt from paying stamp duty on shares that are transferred directly between parties without payment. If the transfer is exempt or there is no chargeable consideration, you do not have to pay stamp duty or SDRT, nor do you need to tell HMRC about the share transfer. Patrick Cannon has extensive experience in the field of taxation around shares, advising and representing individual and business clients on legitimate ways to mitigate or save paying stamp duty on share transactions.
As a former solicitor and a highly respected tax barrister, Patrick has a background in managing HMRC investigations and appeals, and in representing clients in tax tribunals and in the courts.
Stamping is now done digitally and it is not necessary to send the forms to the Stamp Office for manual stamping. Yes, companies must pay stamp duty on the purchase of shares unless a relief applies such as a group relief or company reorganisation relief. A penalty may be appealed within 30 days on the grounds that the taxpayer has a reasonable excuse for submitting a return late.
If you are facing a penalty from HMRC over non-payment or underpayment of the tax, you are always advised to get in touch with a tax lawyer to manage your correspondence with HMRC and guide you through the appeal process.
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