Customer Newsletter - Stamp Duty

London Stamp office -Issue no. 3 17th March 2005

Section 80A Finance Act 1986 (Intermediary Relief)
Section 80C Finance Act 1986 (Stock Lending Relief)

Background

Inland Revenue Stamp Taxes has been reviewing its procedures with regard to purchases of ‘stock or marketable securities’ by a recognised intermediary, or for stock lending and repurchase transactions undertaken on-exchange. As a consequence of the review, we will be introducing changes to the way in which we deal with Stock and Broker Transfer forms relating to the above relief provisions.

New procedures

In the past, the arrangements have been for Stock and Broker Transfer forms to be presented to the London Stamp Office public counter together with a suitably worded certificate endorsed on the document(s) (depending on the relief being claimed). There have however, been a number of occasions where the ‘Stamp of buying broker(s)’ has not been fully completed at the foot of the Stock/Broker Transfer form, nor the CREST Participant code Id inserted to enable us to fully validate the certificate endorsed.

To enable us to verify and maintain accurate assurance records, with effect from 2nd May 2005, all Stock and Broker Transfer forms presented for intermediary or stock lending relief stamping must be endorsed with a certificate, the narrative of which must include the additional information as shown in the suggested example certificates attached to this note. In particular, each certificate must now contain:

  • The name of the individual or organisation;
  • The CREST Participant Code Id;
  • The date of transfer of the securities upon which stamp relief is sought;
  • The name of the relevant Stock Exchange;
  • Signature and name in block capitals of the authorised signatory to the certificate.

Failure to include the above information as part of the certificate will result in the document(s) being returned unstamped.

Additional issues

Customers are reminded when presenting Stock and Broker Transfer forms to the London Stamp Office for relief from a Stamp Duty charge, of the need to include a copy of the document (or schedule where applicable). In this respect, a copy of the front and reverse of the document is required.

Whilst still required to be included in any stock lending certificate, the CREST Transaction Id reference is no longer necessary to be reported in respect of an intermediary relief certificate.

The name, address and CREST Participant Code Id of the securities purchaser should continue to be recorded in the ‘Stamp of buying broker(s)’ box on the Stock or Broker Transfer form.

All enquiries regarding the content of this Newsletter should be forwarded to:-

Birmingham Stamp Office
9th Floor
City Centre House
30 Union Street
Birmingham
B2 4AR

Telephone: 0845 603 0135
Fax: 0121 643 8381