STSM022050 | Scope of stamp duty on shares: stamp duty: adjudication, stamps and reliefs: A “particular stamp”

Traditionally, paper instruments of transfer (for example stock transfer forms) would be sent to HMRC and the payment of (or relief from) Stamp Duty would be confirmed by the physical stamping of the instrument using an impressed die.

When this was the case, two different adjudication stamps were used. They were both circular stamps and were impressed in vermillion ink using the same process used for the impression of duty stamps.

The first stamp was used when no Stamp Duty was payable and was known as the “exempt” or “adjudged not chargeable” stamp. It included the text “Adjudged not chargeable with any duty”.

The second stamp was used when Stamp Duty was payable and was impressed in addition to the duty stamps. It included the text “Adjudged duly stamped”.

As noted in STSM011015 and STSM011015A physical stamping was replaced in 2020 by a new system, under which:

• Transfer instruments (including form SH03 to record the purchase of own shares) are submitted to HMRC electronically

• In place of a physical stamp on the transfer instrument, HMRC issues a letter confirming that duty has been paid, or an instrument has been adjudicated

Instruments which have been processed by HMRC under this system are "duly stamped" instruments (see STSM141030).

Once an instrument has been adjudicated its Stamp Duty status is established with certainty.

Rarely, it may be found that adjudication has been given on the basis of inaccurate, incorrect or incomplete information. Adjudication, once completed, can only be reopened following a request from the original applicant or by order of a court. Reopening adjudication needs to be authorised by an officer of at least Grade 7. Under no circumstances can HMRC initiate the reopening of adjudication.