Securities Transfer Tax UK 2027 | Stamp Duty and SDRT Reform

The UK government plans to introduce a Securities Transfer Tax (STT) in 2027, replacing Stamp Duty and Stamp Duty Reserve Tax (SDRT) with one digital, self-assessed tax on transfers of securities. The proposal has been published with draft legislation, but the final commencement date and legislation are still outstanding. Until the new regime starts, the existing Stamp Duty and SDRT rules continue to apply.

This is a transaction tax, not Capital Gains Tax. It is charged when a chargeable security is bought or transferred; CGT is a separate question that may arise later when an investment is sold at a gain. For the current share-sale rules, use the Capital Gains on Shares guide and the CGT Calculator→.

What is Securities Transfer Tax?

STT is the proposed single tax for transfers of securities. HMRC describes it as a self-assessed, digital-first system that will replace the two interdependent Stamp Taxes on Shares regimes. The policy objective is to simplify administration, remove paper-based processes and provide one system for reporting and payment.

The reform is aimed at people and organisations involved in UK securities transactions, including individual investors, financial institutions, brokers, intermediaries, registrars and other market participants. For a retail investor whose broker already handles a chargeable electronic trade, the most visible change may be the name and back-office process rather than a new tax calculation. That is an expected operational effect, not a promise that every broker workflow will be identical.

When will the new tax start?

The official policy paper says the government is aiming to introduce the single tax, its legislative framework and its portal in 2027. It also says an update on the commencement date will be provided in autumn 2026. The publication therefore supports a 2027 planning horizon, but it does not provide a final day on which the old taxes stop.

Do not treat “introduced in 2027” as proof that a trade completed on a particular date will fall under STT. The legal result will depend on the commencement regulations, the transfer date and any transitional rule that applies to the transaction.

What applies under the current rules?

For a typical electronic purchase of chargeable shares, GOV.UK currently describes SDRT at 0.5% of the transaction consideration. CREST normally collects the tax automatically, so a retail investor may see it as a line in the trade confirmation rather than a separate payment to HMRC. Paper transfers can instead fall within Stamp Duty, and the current rules have different rounding and payment mechanics.

The current GOV.UK overview also lists important distinctions: new issues of shares, gifts for no consideration, some OEIC purchases and unit trust purchases can have different treatment, while foreign shares bought outside the UK may not attract UK Stamp Duty or SDRT. These are current-law examples, not a complete summary of the future STT exemptions. The policy paper says the new legislation will cover the charge, calculation, exemptions, payment, reporting, compliance and administration rules; those details must be checked once the final legislation and guidance are available.

Will STT change the tax rate?

The published policy material explains the replacement and administration model, but the material used for this guide does not set out a final STT rate table. It says the basic principles for accounting for tax on securities transfers are expected to remain broadly unchanged and that the new legislation will set out the calculation and exemptions. That is not enough evidence to promise that every current rate, exception or rounding rule will carry over word for word.

What are the transitional rules?

The proposal includes savings provisions for transfers entered into before commencement where Stamp Duty or SDRT is not due to be reported or paid until on or after commencement. HMRC says those transitional arrangements are intended to last for four years from the commencement of STT. The period is measured from the eventual commencement date, not automatically from 6 April 2027.

This matters most for transactions with a gap between agreement, settlement, reporting and payment. A person cannot decide the tax treatment solely by looking at the date money left a brokerage account. Keep the contract, trade confirmation, settlement record and any tax statement so the broker or adviser can apply the correct transition rule.

What should investors do now?

There is no general reason to rush a personal investment decision solely because STT is planned. The official material says the reform is intended to modernise administration and that the basic principles are expected to remain broadly unchanged. Investment suitability, diversification, fees and the separate CGT position may matter more than the name of the transfer tax.

The practical preparation is record-keeping and verification. Do not assume a broker's current 0.5% line item proves the future STT rate, and do not assume that a tax-free wrapper changes every transaction rule outside the wrapper. If you sell shares, separately check the CGT consequences with the Capital Gains on Shares guide, including pooling and the 30-day matching rules.

Frequently Asked Questions

Evidence and decision checks

A reliable securities transfer tax uk 2027 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Evidence and decision checks

A reliable securities transfer tax uk 2027 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Evidence and decision checks

A reliable securities transfer tax uk 2027 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

This guide reflects HMRC policy material and current GOV.UK share-tax guidance available on 19 September 2026. The draft legislation, commencement date, final rates, exemptions and broker procedures should be checked again when HMRC publishes the autumn update and final implementation guidance.

Official sources

• HMRC: Securities Transfer Tax policy paper
• HMRC: Securities Transfer Tax publication and draft legislation
• GOV.UK: tax when you buy shares
• GOV.UK: buying shares electronically
• HMRC: Stamp Duty Reserve Tax rates manual

These HMRC and GOV.UK sources are the official references for the proposed STT policy, current Stamp Duty and SDRT rules, electronic share purchases and the distinction from Capital Gains Tax discussed here.