SDRT/Stamp Duty - your opportunity to reclaim charges?

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On 1 October 2009 the European Court of Justice found that the 1.5% Stamp Duty Reserve Tax (SDRT) charge levied by the UK upon the issuance of new securities into a clearance service is contrary to EU law.

Although the HSBC case concerned the issue of shares into a clearance service, the judgment gives strong support to reclaims in respect of the 1.5% SDRT paid on issues of UK shares to depositary receipt systems (typically American Depositary Receipts).

Businesses that have paid 1.5% SDRT or Stamp Duty in relation to clearance services or depository receipts should pursue reclaims now. Typically these charges may arise where a UK public company has an overseas secondary listing, has acquired a non-UK company or has set up share schemes for overseas employees.

How can PwC help?
We can help by:

Identifying potential reclaim opportunities for your business;
Quantifying the SDRT and Stamp Duty reclaimable, including calculation of potential interest;
Maximising the timeframe covered by claims submitted;
Assisting with the reclaim mechanics and advising on the strategy, methodology and tactics for filing a reclaim with HMRC.

Contacts

Craig Leslie

+44 (0) 20 7212 4287

Peter Cussons

+44 (0) 20 7804 5260

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