Which of the following best describes when stamp duty reserve tax (SDRT) is payable?

• A. On shares purchased with a stock transfer form
• B. On shares purchased electronically with no stock transfer form
• C. On bonds
• D. On land

Answer: (B)

SDRT is charged on electronic share transfers where there is no physical instrument of transfer. When shares are bought and the transfer is completed electronically (for example via CREST) without a stock transfer form, SDRT is payable by the buyer on the consideration. If a stock transfer form is used, stamp duty (not SDRT) applies instead. SDRT does not apply to bonds or land, which are governed by other taxes.