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Under the new regime, stamp duty and Stamp Duty Reserve Tax will be replaced with a single self-assessed levy payable by purchasers
The Government has published draft legislation introducing a new Securities Transfer Tax (STT) – a single, mandatory tax on the transfer of securities that will replace both stamp duty and Stamp Duty Reserve Tax. The new tax will be self-assessed and payable by the purchaser, with reporting and payment through a new HMRC online portal (although transactions currently processed through CREST will continue to have tax collected through CREST). You can read more on the STT in our previous corporate blog post here.
The draft legislation, which will be included in Finance Bill 2027, is detailed and extensive. It covers all aspects of the new tax, including scope, calculation, liability, exemptions, payment, reporting and administration. At first glance, the new rules comprise many familiar concepts, including a number of the reliefs available under the existing stamp duty regime, but the final provisions will need to be reviewed carefully to understand fully how the new tax will operate in practice.
The STT will be introduced in 2027, with the specific commencement date to be confirmed this autumn.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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