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The government has confirmed the timetable for the modernisation of stamp tax on shares. We now know that stamp duty and stamp duty reserve tax (SDRT) will be replaced by securities transfer tax (STT) in late 2027. The government will also keep under review the impact of STT on UK capital markets.
Buyers and sellers of UK shares and securities, share registrars, clearing systems and intermediaries currently operating the stamp duty and SDRT regimes.
STT will be introduced from late 2027, with legislation in Finance Bill 2026/27 and the change brought into force through a commencement order.
Replacing the current dual stamp duty and SDRT regime with a single tax is a long-overdue piece of modernisation, given that the existing framework still reflects a physical, paper-based stamping process that sits uneasily alongside the electronic settlement systems most share transactions now use. A single tax with a consistent charging mechanism should reduce the scope for the kind of technical uncertainty that has historically arisen over which of the two existing taxes applies to a given transaction structure, particularly in more complex corporate transactions.
With the new tax not taking effect until late 2027 and full legislative and procedural detail yet to be confirmed through the forthcoming Finance Bill and commencement order, businesses and intermediaries involved in share transactions should begin preparing now for system and process changes, particularly registrars and clearing systems, which will need to adapt well ahead of commencement.