COVID-19: Stamp Duty payments and stamping of documents

The temporary processes for dealing with Stamp Duty on shares during the COVID-19 outbreak put in place by HMRC have now been made permanent from 19 July 2020.

Share transfer and purchase of own shares documents as well as Stamp Duty payments are now being processed only electronically.

To avoid delays in the processing of your documents, it is recommended to first arrange electronic payment of Stamp Duty and to confirm your payment reference in the email sending the documents to HMRC.

Pay Stamp Duty electronically

HMRC is asking that Stamp Duty be paid only by BACS or CHAPS or via Faster Payment option for online banking transfers. HMRC will not process documents unless duty has been paid in full and it is important to accept any banking charges for faster payments when arranging payment by bank transfer.

The deadline for paying Stamp Duty on shares has not changed. It is still 30 days from the date when the stock transfer form (or other transfer instrument) was signed and dated. Late payments may incur a penalty or interest charge or both. When making arrangements to pay the Stamp Duty, consider whether the 30 days deadline falls on a weekend on bank holiday and ensure that the payment reaches HMRC on the last working day before the deadline. BACS payments can take up to 3 working days to clear.

Email documents to HMRC

Documents that require stamping should be sent to HMRC in electronic copy by email to stampdutymailbox@hmrc.gov.uk  Ensure that the documents are properly completed, signed and dated before they are sent. Whilst the coronavirus measures are in place, HMRC will accept e-signatures. If there is a reason why it is not possible to arrange the signing and dating of the documents, or pay duty electronically, you should email stampdutymailbox@hmrc.gov.uk to seek further guidance. There is also a postal address to send details and copy documents to if it is not possible to send by email.

Documents submitted electronically will be assessed and HMRC will respond by email within 20 days.

If you have any queries or require any assistance, please do not hesitate to contact your usual haysmacintyre contact or email CV19@haysmacintyre.com.