STSM041020 | Exemptions and Reliefs: exemptions: securities exempt from stamp duty are generally exempt from Stamp Duty Reserve Tax (SDRT)

Although the scope of ‘chargeable securities’ (for Stamp Duty Reserve Tax (SDRT) purposes) has much in common with that of ‘stock and marketable securities’ (for stamp duty purposes) there are differences.

FA86/S99(3) defines ‘chargeable securities’ for the purposes of a charge to SDRT (see STSM031090). Under the provisions of section 99(5), ‘chargeable securities’ will not include securities the transfer of which is exempt from all stamp duty. Broadly speaking, if a transaction is exempt from stamp duty then it will also be exempt from SDRT. Securities which are exempt from stamp duties, such as gilts (FA99/SCH13/PARA24) and loan capital (FA86/S79), are exempt from SDRT.