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STSM022010 | Scope of stamp duty on shares: stamp duty: adjudication, stamps and reliefs: the adjudication procedure

From HM Revenue & Customs · Stamp Taxes on Shares Manual

As detailed in section 12 Stamp Act 1891, any person may require the Commissioners for HMRC to give a formal opinion, with reference to any executed instrument, on:

  1. whether Stamp Duty is chargeable

  2. if so, what amount is chargeable

  3. whether any penalty is payable

  4. if so, what penalty is, in their opinion, correct and appropriate.

Adjudication is not the same as a request for an informal opinion of the Stamp Duty payable. To avoid any confusion the word "adjudicate” should not be used if only an informal opinion is sought, as the formal adjudication process can be lengthy and involve obtaining legal advice. Adjudication is also the process that must be followed if the customer wishes to appeal to the High Court.

Adjudication is carried out either by request or because it is compulsory (see STSM022100). STSM022020 gives more information on the adjudication process.