- Following consultation in 2023, the government intends to replace the current two stamp taxes on shares (the stamp duty reserve (SDRT) and the stamp duty) with a mandatory, single self-assessed 0.5% tax on securities. The reporting and paying of the tax will be via an online portal to be developed by HMRC (or under the existing CREST system for electronic transfers).
- Under the new single tax, the purchaser will be deemed the liable person, although agents acting on behalf of the purchaser may also have some obligations, for instance to make sure the transaction is reported.
- Following feedback to the 2023 consultation, the government intends to allow different payment deadlines for transfers carried out in electronic settlement systems (14 days) and those taking place outside of electronic settlement systems (30 days). Deferral applications will be permissible for transactions involving contingent or uncertain consideration.
- The group relief and the acquisition and reconstruction reliefs currently available within the stamp taxes framework will be retained in the new single tax.
- The government has separately published a consultation on modernising the 1.5% charge regime.
- Timing: the government intends to introduce the single tax, its legislative framework and the online portal in 2027. The consultation on the 1.5% charge regime closes on 21 July 2025.
Resources (click to open)
- Modernisation of the Stamp Taxes on Shares Framework – Summary of responses (HMRC, April 2025)
- Modernisation of the Stamp Taxes on Shares Framework: 1.5% charge (HMRC, April 2025)
- Stamp taxes on shares modernisation (HMRC, consultation, April 2023)
