18 Questions
In which of the following cases is stamp duty not paid?
Where there is no monetary consideration
Which of the following types of shares is exempt from stamp duty?
Shares traded on stock exchanges for smaller companies
What is required when transferring shares between nominees or declarations of trust?
Confirmation that the transaction does not form part of a larger transaction or series of transactions
Which of the following is an example of a transaction that does not form part of a larger transaction or series of transactions?
Shares transferred as a gift
What provision allows parent companies to exempt the transfer of shares from stamp duty?
Finance Act 1930
Which of the following types of shares is not exempt from stamp duty?
Shares traded on stock exchanges for larger companies
What is the primary purpose of stamp duty reserve tax?
To deal with intermediate sale agreements
What is the result of a transfer of shares in terms of stamp duty?
The transferee pays the stamp duty
Which of the following is an exemption from stamp duty?
Transfers where the consideration does not exceed £1,000
What is the outcome of a change in trustee or the transfer of shares from an estate to beneficiaries?
The transfer is subject to the same procedures as a sale of shares
What is the main difference between stamp duty and stamp duty reserve tax?
Stamp duty is levied on the final transfer, while stamp duty reserve tax is levied on intermediate sale agreements
What type of transfer is exempt from stamp duty due to the absence of monetary consideration?
Transfer with no monetary consideration
At what rate is the tax charged in the UK?
0.5% of the total sale price rounded down to the nearest penny
When does liability arise for a conditional agreement?
At the date the condition is satisfied
What is the basis of settlement within CREST?
Delivery versus payment
What is the consequence of late payment of the tax?
Both penalties and interest may be charged
What is the purpose of CREST?
To bring securities trading in the UK and Republic of Ireland up to the best international standards
What is the due date for payment of the tax?
The last day of the month following the month in which the charge arises
This quiz covers the basics of the UK's Stamp Duty Reserve Tax (SDRT), including the tax rate, payment deadlines, and liability dates. It's essential knowledge for finance professionals, tax advisors, and investors.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
