What is the difference between Stamp Duty and Stamp Duty Reserve Tax (SDRT)?
The following tax facts should be viewed as an indication of the rates and allowances available and relate to the current tax year (2020/2021) unless stated otherwise. Tax law is notoriously complex and we cannot replicate every rule, nuance or exemption here. Therefore you should not make, or refrain from making, any decisions based on this information alone. If you are in any doubt as to the suitable course of action we recommend you seek tax advice. Remember tax rules can change and depend on your personal circumstances.
Stamp Duty is payable on certain securities which cannot settle through the UK electronic settlement system; CREST. These are known as “Residual Securities”. Stamp Duty is charged at 0.5% on any purchase valued at greater than £1,000 and is rounded up to the nearest multiple of £5.
SDRT is charged on purchases of most stocks which are able to settle through CREST and is charged at 0.5% regardless of the value of the trade. It is rounded up to the nearest 1p.