stamp duty
A tax collected by stamping the legal documents giving effect to certain transactions. The tax has been imposed continuously since the enactment of the Stamp Duty Act 1694. Stamp duty is a tax on a document and not on a transaction or a person. The primary charging statute is the Stamp Duties Management Act 1891. Since 1 December 2003 stamp duty has been charged solely on traditional paper documents effecting the transfer of shares and securities (including bearer instruments). The rate of duty is ½% of the consideration given. Since 2003 transfers of land have been subject to stamp duty land tax, not stamp duty. Transfers of shares that are made electronically are subject to stamp duty reserve tax. |