STSM118040 | Derivatives: introduction to contracts for difference: contracts for difference - stamp implications

As the issue or closure of a Contract for Difference (CFD) does not involve the purchase of a ‘stock or marketable security’ or ‘chargeable security’ there is no Stamp Duty or Stamp Duty Reserve Tax (SDRT) liability.

Equally, the purchase of underlying securities (i.e. stocks and shares) to hedge the issue of a CFD by the issuing CFD provider will not be subject to a SDRT or Stamp Duty charge if the issuing provider is recognised as an intermediary eligible for Stamp Duty and SDRT relief under section 80A or 88A Finance Act 1986.

See STSM118030 for the meaning of hedging a CFD.

See STSM031090 for the meaning of chargeable securities.

See STSM042050 for the meaning of an intermediary.