Paying stamp duty on share transfers

Posted on 31st October 2022 by Streets Stamp duty

Image to represent Paying stamp duty on share transfers

Stamp Duty is paid on shares bought on a stock transfer form. A stock transfer form is the standard form used for transfers of shares from one person to another. If you use a stock transfer to buy stocks and shares for £1,000 or less, you do not normally have to pay any Stamp Duty.

The 300-year-old process used to manually stamp documents to show the duty has been paid, came to an end on 19 July 2021. A new electronic process was introduced during the pandemic as traditional physical stamping could not function under COVID-19 restrictions. As this process has worked well, HMRC has decided to retain the new approach. This requires 

The stamp duty must be paid and HMRC notified within 30 days of the document being dated and signed. If the deadline is missed, you may have to pay penalties and / or interest.

Once the Stamp Duty has been paid, HMRC should be notified by email. The email should be sent to

The email should include:

  • the payment reference;
  • the payment amount;
  • the date of payment;
  • an electronic copy (for example, a scanned PDF) of either the signed and dated stock transfer form, instrument of transfer or form SH03 for return of purchase of own shares.

Note Stamp Duty is not the same as paying Stamp Duty Reserve Tax, which is paid on the paperless purchase of shares.

No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.


The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.

Expert insight and news straight
to your inbox

Related Articles

Self-assessment payments on account

Self-assessment taxpayers are usually required to pay their income tax liabilities in three instalments each year. The first two payments on account are due on 31 January during the tax year and 31 July following the tax year end date. These

Falling inflation – what does it mean for you?

The following notes are reproduced from a Treasury statement issued 21 May 2024. Lower inflation supports people by maintaining the purchasing power of their money. If prices only rise slowly, people can plan their budgets more effectively -

New Brooms

As time passes during the present election campaign, its seems more likely that we may have a change of government from the 5 July. Labour have disclosed a number of tax changes they would introduce. To summarise they are: Private school fees

You might also be interested in...