STSM071200 | Transfers of listed securities and connected persons

Finance Bill 2018-19 introduces legislation providing for a Stamp Duty and Stamp Duty Reserve Tax (SDRT) market value rule to apply where listed securities are transferred to a company or its nominee (whether or not for consideration), and the person transferring the securities is connected with the company or is the nominee of a person connected with the company.

The change came into effect from 29 October 2018 and applies for the purposes of a SDRT charge under FA86/S87 at 0.5%, to an agreement to transfer ‘chargeable securities’ as defined in section 99 of Finance Act 1986 which was entered into on or after 29 October 2018, and for a SDRT charge at 1.5% (under FA86/S93 and S96) where the transfer is on or after 29 October 2018. A similar change was made to Stamp Duty and applies to instruments executed on and after 29 October 2018.

STSM031210 explains how a SDRT charge is to be calculated on an agreement to transfer listed shares to a company and the person transferring the securities is connected with the company

STSM031090 gives the meaning of chargeable securities

STSM021300 explains how a Stamp Duty charge is to be calculated on an instrument of transfer, of listed shares to a company and the person transferring the securities is connected with the company