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HMRC have commissioned an enhanced stamp duty reserve tax (SDRT) assessment system, which is scheduled to go live in June 2014.
The aim of the new offering – developed and delivered by financial services company Euroclear UK & Ireland Ltd – will be to rebalance the established market practice of gross transactions being sent for reporting and assessment for SDRT at a centralised point.
HMRC have commissioned an enhanced stamp duty reserve tax (SDRT) assessment system, which is scheduled to go live in June 2014.
The aim of the new offering – developed and delivered by financial services company Euroclear UK & Ireland Ltd – will be to rebalance the established market practice of gross transactions being sent for reporting and assessment for SDRT at a centralised point.
Most SDRT is currently assessed through CREST, an electronic settlement and registration set-up, but an increasing trend for gross transactions in securities to be aggregated or netted off outside CREST before settlement means Euroclear, the operator, cannot assess the gross transactions as the legislation requires.
The new assessment system will allow financial businesses accountable for SDRT to report gross transactions separately to a central, dedicated point, while those who wish to continue settle to transactions on an aggregated or net basis in CREST will be able to do so.
Firms that settle their transactions in CREST on a normal gross basis, or use the netting functionality within the service, will not be affected because transactions will be assessed using the already established SDRT assessment process.
Next year’s enhanced offering will be operated separately but will closely follow the established SDRT market practice in CREST.
