STSM141050 | Stamp Duty and Stamp Duty Reserve Tax administration: Stamp Duty administration: unstamped instruments - Stamp Duty Reserve Tax implications

Where no stock transfer form or other instrument of transfer is used to effect the transfer, the agreement to transfer the securities is likely to be chargeable to Stamp Duty Reserve Tax (SDRT), often handled through CREST (see STSM131010).

Where the SDRT is not notified and paid to HMRC through CREST, the customer must send full details of the transaction direct to HMRC together with payment of the SDRT. Details of how to do this are published on gov.uk.

If, subsequently, an instrument for exactly the same transaction is executed and duly stamped (see STSM141020 and STSM141030), then the charge to SDRT is cancelled (see STSM142040) and any SDRT that has been paid will be refunded together with any appropriate interest.