STSM151010 - Compliance: introduction - Stamp Duty - Stamp Act 1891 s14(4)

The Stamp Act 1891 provides that an instrument chargeable with Stamp Duty may not be registered or used unless it has been duly stamped (see STSM141030). Since owners want to be able to demonstrate their title to property, they are effectively required to have the transfer instrument stamped if they want anyone, including a court, to take notice of it. The provision is at section 14 (4) SA1891:

“….an instrument executed in any part of the United Kingdom, or relating, wheresoever executed, to any property situate, or to any matter or thing done, in any part of the United Kingdom, shall not, except in criminal proceedings, be given in evidence, or be available for any purpose whatever, unless it is duly stamped in accordance with the law in force at the time it was executed.”

While HMRC has no direct Stamp Duty enforcement powers, an unstamped instrument cannot be relied upon nor can it be used for legal purposes, such as registering a transfer of ownership or production as evidence in court, except in criminal proceedings. So, if an instrument is needed for any legal purpose, such as registering a transfer of ownership or production in a civil court action, it must first be stamped.

In addition, under section 17 SA1891 a penalty of up to £300 may be incurred by anyone who registers or records an instrument which is not duly stamped.