STSM053120 | Depositary receipt and clearance services: 1.5 per cent higher rate charge: transfers of treasury shares

With effect from 1 January 2024, owing to section 97AD FA1986 no 1.5% SDRT charge under sections 93 or 96 FA1986 arises on the transfer of own shares held by a company (i.e., treasury shares) to a depositary receipt issuer or clearance service.

Similarly, sections 67 (9ZA) and 70 (9ZA) FA1986 act to prevent a 1.5% Stamp Duty charge arising where an instrument is used to effect the transfer of own shares held by a company (i.e., treasury shares) to a depositary receipt issuer or clearance service.

Further information on treasury shares can be found in STSM041250.