UK Stamp Duty Reserve Tax (SDRT)

Play an AI-generated podcast conversation about this lesson

In which of the following cases is stamp duty not paid?

Where the shares are transferred between spouses

Where there is no monetary consideration (correct)

Where the transaction forms part of a larger transaction or series of transactions

Where the consideration for the transaction exceeds £1,000

Which of the following types of shares is exempt from stamp duty?

Shares transmitted following the death of a shareholder

Shares traded on stock exchanges for larger companies

Shares transferred between subsidiaries of a large company

Shares traded on stock exchanges for smaller companies (correct)

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 (correct)

Approval from the stamp office

Payment of stamp duty

Notification to the stock exchange

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 Signup and view all the answers

What provision allows parent companies to exempt the transfer of shares from stamp duty?

Finance Act 1930 Signup and view all the answers

Which of the following types of shares is not exempt from stamp duty?

Shares traded on stock exchanges for larger companies Signup and view all the answers

What is the primary purpose of stamp duty reserve tax?

To deal with intermediate sale agreements Signup and view all the answers

What is the result of a transfer of shares in terms of stamp duty?

The transferee pays the stamp duty Signup and view all the answers

Which of the following is an exemption from stamp duty?

Transfers where the consideration does not exceed £1,000 Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

What type of transfer is exempt from stamp duty due to the absence of monetary consideration?

Transfer with no monetary consideration Signup and view all the answers

At what rate is the tax charged in the UK?

0.5% of the total sale price rounded down to the nearest penny Signup and view all the answers

When does liability arise for a conditional agreement?

At the date the condition is satisfied Signup and view all the answers

What is the basis of settlement within CREST?

Delivery versus payment Signup and view all the answers

What is the consequence of late payment of the tax?

Both penalties and interest may be charged Signup and view all the answers

What is the purpose of CREST?

To bring securities trading in the UK and Republic of Ireland up to the best international standards Signup and view all the answers

What is the due date for payment of the tax?

The last day of the month following the month in which the charge arises Signup and view all the answers

UK Stamp Duty Reserve Tax (SDRT)

Choose a study mode

Podcast

Questions and Answers