Stamp Duty Reserve Tax: HSBC Holdings PLC and the Bank of New York Mellon Corporation v HMRC
Guidance on claiming Stamp Duty Reserve Tax (SDRT) refunds as a result of the European Court of Justice ruling prohibiting the levying of SDRT- further announcement.
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Following an appeal hearing in June 2011, the First-tier Tribunal (Tax Chamber) released its decision in the above case on 28 February 2012. The Tribunal held that the charge to SDRT at the rate of 1.5% levied on a transaction whereby shares in HSBC were transferred to the Bank of New York Mellon as an integral part of the raising of capital by HSBC is incompatible with the European Union (EU) law, in particular the Capital Duty Directive.
HM Revenue and Customs (HMRC) has considered the decision in detail and has decided not to seek permission to appeal against it. The decision is therefore now regarded as final.