How is sdrt calculated

UK, remember your settings and improve government services. We also use cookies set by other sites to help us deliver content from their services. You can change your cookie settings at any time. UK is being rebuilt — find out what beta means. Where chargeable securities are transferred on sale or otherwise than on sale to a depositary receipt issuer or its nominee or operator of a clearance service or its nominee the 0.

In any other case which includes a transfer otherwise than on sale, the 1. Once any 1. The 1. The SDRT charge is rounded to the nearest penny if necessary, taking any 0. In the UK, Stamp Duty tax is payable on the transfer of existing shares. Calculated at a rate of 0. Existing shares that are bought and transferred electronically i. Such documents need to be presented to HMRC to be stamped. Stamp Duty Reserve Tax , which was introduced in the UK in , is charged on transactions in shares that are transferred electronically without a written instrument of transfer i.

SDRT was established to address the increasing number of paperless share transfers that were outside the scope of Stamp Duty tax charges. The chargeable consideration given for shares may be in the form of cash or non-cash payment. When dealing with non-cash consideration, the amount of SD or SDRT that you pay should be based on the market value of the non-cash consideration at the date on which the agreement is made. SDRT is also charged at a flat rate 0. This higher rate usually applies when transferring shares to a scheme that enables shares to be traded free of SD and SDRT.

We advise checking the details of your particular scheme with your stockbroker. You can pay Stamp Duty in a number of ways, including:. The reference should be your name and the payment amount, with no spaces.

Additionally, when paying via one of the first three options above, you must include a confirmation letter with your Stock Transfer Form, stating the payment reference, payment amount, and date of payment. A Stock Transfer Form should be completed in block capitals, in blank ink, and include all of the details of the sale of the shares, including:. There are also two certificates on the reverse of the Stock Transfer Form, one of which may have to be completed.

There is no requirement to complete either certificate when there is no chargeable consideration given for the shares or when you are claiming relief from Stamp Duty. However, when applying for a relief, the Stock Transfer Form must be sent to HMRC for stamping, along with details of the relief that is being claimed.

If Certificate 1 or Certificate 2 is completed, or the consideration for the share transfer is nil, there is no need to send the Stock Transfer Form to HMRC for stamping. Instead, it should be sent to the company in which the shares are held. When applicable, SDRT at a rate of 0. For external receipt instructions where the customer is to receive securities from an external counterparty under the 0. If the an external counterparty is considered a custodian bank and none of the parties has accounted for SDRT in CREST, no default calculation will take place, resulting in an underpayment; or.

For delivery instructions under the 0.