STSM142070 | Stamp duty and SDRT Administration: SDRT Administration: notice of charge and accountable date

Notice of charge and accountable date

The time limits for the notification and payment of Stamp Duty Reserve Tax (SDRT) are contained in the Stamp Duty Reserve Tax Regulations (SI 1986/1711). Regulation 3 states that tax is due and payable on the accounting date. The accounting date is defined in regulation 2 and varies depending on the circumstances.

CREST Transactions

For transactions within CREST, the accountable date for payment of SDRT to HMRC by the operator of the system is the subject of an agreement between Euroclear UK & International Ltd (EUI) and HMRC. The tax will typically be debited from CREST Participants’ accounts within ten days of the date of the transaction.

Non-CREST Transactions

Transfers made outside of the CREST system are often referred to as “off market” transactions which involve “residual securities”.

Accountable Date

If the agreement to transfer securities could have been reported through CREST then the “accountable date” for the payment of Stamp Duty Reserve Tax (SDRT) (and any interest on overdue tax) is the 14th day after date of the agreement (regulation 2 SI 1986/1711).

Otherwise the “accountable date” is the 7th day of the month following that in which the charge arises (regulation 2 SI 1986/1711).

Form of notification

No formal form of notice has been prescribed under regulation 4. The basic information needed is:

• the date of the agreement,

• the names of the parties,

• the description and number of securities,

• the consideration paid, and

• the SDRT payable.

Practical guidance on making an SDRT notification is available on gov.uk.

Sometimes (for example on an offer for sale) someone other than the accountable person undertakes to notify and pay the tax, having entered into an agreement with HMRC under regulation 4.