Can I claim back stamp duty UK


Greg Dickson

Greg Dickson, Director of Thomtax, offers expert tax solutions since 1995, blending seasoned strategies with a personalized touch for each client's unique needs.

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Stamp Duty and Stamp Duty Reserve Tax (SDRT) are both taxes imposed in the UK. However, they apply to different types of transactions.

Stamp Duty is a tax on  the transfer of land and property, which is payable by the purchaser. It is calculated on a sliding scale depending on the purchase price. A SDLT refund is a repayment of taxes you may be eligible to receive from HMRC if you have paid too much Stamp Duty Land Tax (SDLT) when buying property or land. The amount repaid depends on the circumstances and can range from a few hundred pounds to several thousands.

SDRT, on the other hand, is a tax levied on electronic transfers of shares and certain other securities such as units in unit trusts or OEICs (open-ended investment companies). It is charged when these securities are transferred electronically rather than through the exchange of physical documents. The standard rate for SDRT is also 0.5%.

Higher rates may apply in certain cases, such as the transfer of shares in residential property-holding companies. Additionally, some transactions are exempt from SDRT, like the transfer of shares between spouses or civil partners and transfers made as a gift.

It’s important to note that SDRT is separate from Stamp Duty Land Tax (SDLT), which is levied on the purchase or transfer of real estate property in the UK.

In summary, Stamp Duty and SDRT are two distinct taxes; the former applies to transactions involving physical documents while the latter applies to electronic transfers of shares and securities. Both taxes serve similar purposes, but differ in the way they are charged. Their rates are generally the same, however.

Additionally, certain transactions may be exempt from SDRT, so it’s important to check with your financial advisor or accountant to determine if you need to pay either tax when transferring shares or securities.

It’s also important to note that SDRT is separate from Stamp Duty Land Tax (SDLT), which applies to real estate transactions in the UK.

Keep these differences in mind when making financial transactions in the UK. Knowing which taxes apply to you can help ensure that you make all the necessary payments on time and avoid any penalties.

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