Advance notice – changes to SD and SDRT are (eventually) coming…

Following an initial consultation in 2018, then a ‘call for evidence’ in 2020 and then another consultation period 27 April 2023 to 22 June 2023 the government has decided to modernise (mess with) the Stamp Duty legislation.

You can expect to hear about this in the 2025 Autumn Budget with an effective date of 2027… then postponed by HMRC to 2028 (😆).

The net result of the protracted process is that there will be a ‘new single tax on securities’ (🤭am glad I was sitting down for that surprise).

For those who are still reading (and there won’t be many 😴) please note the following:

The UTRN (Unique Transaction Reference Number will be issued when the tax return is submitted on the new portal, rather than waiting until after the tax has been paid.
The purchaser will still be the liable person. The accountable person will now be the purchaser or another person, depending on the facts of the transaction, the same as for SDRT (Stamp Duty Reserve Tax) currently.
Different accountable dates will be allowed: 14 days for transfers carried out in electronic settlement systems and 30 days for those taking place outside electronic settlement systems.
The two-year deferment backstop will be extended to four years with the possibility of extension applications up to a maximum of 12 years.
The £1,000 de minimis will still be removed; however, the Government plans for the online portal to provide the facility to handle the filings required by company law.
Notification penalties will be changed to a percentage-based regime.
The rate will remain at 0.5% however, a 1.5% charge regime has been published. This higher rate charge applies in certain circumstances when UK securities are transferred overseas.

HMRC is designing and building the online portal service (hence my comment that it will be postponed by HMRC 😂🤣). Which will allow for reporting and paying the new single tax.

For any questions or advice on the above, please get in touch with the team.