Stamp duty reserve tax
Stamp duty reserve tax (SDRT) is due on transfers of stock or marketable securities.
The purchaser of the stock of the marketable security (or a similar accountable person) has a responsibility to inform HM Revenue and Customs of the transaction if it is liable to stamp duty reserve tax.
Generally HM Revenue and Customs must be informed by the seventh day of the month following the date of the transaction, albeit with special rules applying to Stock Exchange transactions. Stamp duty reserve tax is payable at 0.5 per cent of the purchase price with a special regime applying to dealings in unit trusts and open ended investment companies.
Gilts and bonds are generally exempt from stamp duty reserve tax.