Q&A: No more stamp taxes on issues and certain transfers to depositaries and clearance services

The Finance Bill 2023-24 will retain and extend the disapplication of the 1.5% stamp tax charge on issues and certain transfers of UK equities to depositaries and clearance services.

What is the change?

From 1 January 2024 issues of chargeable securities (generally UK equities but also certain loan capital and non-UK equities) into clearance services or depositary receipt systems (together ‘relevant systems’) as well as transfers of chargeable securities into relevant systems in the course of capital-raising arrangements (‘exempt capital-raising transfers’) or qualifying listing arrangements (‘exempt listing transfers’) are not subject to any charge to stamp duty or stamp duty reserve tax (SDRT) (Sch 11 of the Finance Bill 2023-24). The 1.5% stamp tax charge has also been removed for issues or transfers of bearer instruments and transfers of treasury shares to relevant systems.

Following EU and UK court decisions in 2009 – HSBC Holdings...