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STSM142060 | Stamp duty and SDRT Administration: SDRT Administration: liable person and accountable person

From HM Revenue & Customs · Stamp Taxes on Shares Manual

Liable Person

For the principal 0.5% charge to Stamp Duty Reserve Tax (SDRT) under section 87 FA1986, the liable person is always the purchaser/transferee (section 91 FA1986 refers).

Accountable Person

However, the Stamp Duty Reserve Tax Regulations 1986 (SI 1986/1711) make an “accountable person” responsible for accounting for the SDRT. Under regulation 4 the accountable person has to notify HMRC of an SDRT charge and to pay the tax on or before the “accountable date” (unless “different arrangements” are made with HMRC).

In respect of the principal 0.5% SDRT charge under section 87 FA1986, the accountable person is usually an exchange member or, failing that, a “qualified dealer”.

SI 1986/1711 regulation 2 sets out the order in which the accountable person is identified:

  1. The purchaser if they are an exchange member, or if the purchaser is not an exchange member then an exchange member acting on behalf of the purchaser; or failing that

  2. The seller if they are an exchange member, or if the seller is not an exchange member then an exchange member acting on behalf of the seller; or failing that

  3. The purchaser if they are a qualified dealer, or if the purchaser is not a qualified dealer then a qualified dealer acting on behalf of the purchaser; or failing that

  4. The seller if they are a qualified dealer, or if the seller is not a qualified dealer then a qualified dealer acting on behalf of the seller; or failing that

  5. The purchaser (i.e. the liable person).

A “qualified dealer” is defined in regulation 2 as a person who, while not being an exchange member:

  1. is a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on investment business, or

  2. is authorised under a legislative provision of the government of a territory outside the United Kingdom to carry on investment business, or

  3. while not required to be authorised to do so, carries on investment business.

There are different accountability rules in regulation 2 for the other (not section 87 FA1986) SDRT heads of charge.