STSM054030 | Depositary receipt and clearance services: calculation of 1.5 per cent Stamp Duty/Stamp Duty Reserve Tax charge: interaction of Stamp Duty and Stamp Duty Reserve Tax 1.5 per cent charge

The provisions of section 93(7) and 96(5) FA1986 ensure that any Stamp Duty paid on an instrument effecting a transfer of securities is offset against any Stamp Duty Reserve Tax (SDRT) charged under section 93 or 96 FA1986 respectively on the transfer. In practice, if an instrument has been executed and 1.5% Stamp Duty has been paid, this may well cancel the whole SDRT charge.