STSM013020 - Introduction to Stamp Duty on shares and Stamp Duty Reserve Tax (SDRT): Stamp duty rates: Stamp Duty - rates for particular transactions
Bearer Instruments are defined at paragraph 3 of Schedule 15 to FA1999.
Stamp Duty is charged:
- on the transfer in the UK of the stock constituted by or transferable by means of a bearer instrument if duty would be charged at the standard rate under Schedule 13 FA1999 if the transfer were effected by an instrument other than a bearer instrument; or
- the stock constituted by or transferable by means of a bearer instrument consists of units under a unit trust scheme
In accordance with paragraph 4 of Schedule 15 to FA1999 Stamp Duty is charged at 1.5% of the market value of the stock constituted by or transferable by means of the instrument.
A different rate applies to:
- a deposit certificate in respect of stock of a single non-UK company or
- an instrument issued by a non-UK company that is a bearer instrument by usage (and is not within the definition of bearer instrument mentioned at the top of this page)
In these cases, Stamp Duty is charged at 0.2% of the market value of the stock constituted by or transferable by means of the instrument, in accordance with paragraph 5 of Schedule 15 to FA1999.
Further information can be found at STSM063010.
2015 Changes
In 2015 UK companies were prohibited from issuing any further bearer shares, and were required to cancel or convert any existing bearer shares into registered shares. See STSM061050 for more information.
2024 Changes
The charge on the issue of bearer instruments was removed from domestic legislation with effect from 1 January 2024. See STSM061060 for more information.