Stamp Duty Reserve Tax

[breakingbad1]

This is not about Stamp Duty (nowhere near that level yet) but SDRT. My broker is registered with the FCA but for some reason they don't seem to use CREST. This automatically transfers SDRT to HMRC. Apparently I would have to do this myself but HMRC mentions "written notice" so they can identify bank transfers, etc.

I should point out the amount is very small but being somewhat autistic stuff like this bothers me especially if successful enough to withdraw and pay capital gains I want everything to add up. I'm not sending a letter to them just to report some tiny SDRT amount. For those of you who have actually paid this please detail every step you took. I will be using bank transfer.

 

[BigDeal]

I think its pretty unusual for a broker not to use Crest. I would try to find one that does, because reporting your own SDRT seems a bit onerous, and a bit of a pain for small amounts.
HMRC offer a specfic mailbox for SDRT queries; it might be worth contacting them about the process because the timeframe for paying is pretty short
Try [email protected].

 

[breakingbad1]

I think its pretty unusual for a broker not to use Crest. I would try to find one that does, because reporting your own SDRT seems a bit onerous, and a bit of a pain for small amounts.
HMRC offer a specfic mailbox for SDRT queries; it might be worth contacting them about the process because the timeframe for paying is pretty short
Try [email protected].

I contacted them yesterday and got one reply (waiting on another but it's closed today) saying the amount is correct but also that the choice is "entirely my own". Obviously I realise they aren't going to kick my door down over it. There was also something about "written notice" on their website but if they think I'm sending them a letter over some tiny amount that's not gonna happen.

My broker is XTB who said something about Citibank when questioned about it. They seem popular enough despite this (they offer normal stocks now not just CFD) but it's my fault for not researching everything and being aware of SDRT and CREST. I also picked the broker too quickly though besides this minor thing they seen fine.

 

[cara2]

Unless I'm mistaken, my broker just takes the 0.5% on UK stocks, from the payment and forwards it to HMRC.
EToro used to "pay it for you" (yeah, right) but now they charge it, and I haven't seen anything about you having to do it separately.

 

[breakingbad1]

Yes I've been researching other brokers and that Etoro story came up. There's no mention of SDRT on my broker statement and nothing on my balance that suggests it's been taken. Instances like this must put off many investors unless the majority just don't care and ignore it at least with tiny amounts.

 

[BigDeal]

but it's my fault for not researching everything and being aware of SDRT and CREST

To be fair it's not something many people would think about (me included). I've always assumed that brokers have an obligation to levy and pay it on if they offer a nominee service, but clearly not.

Unless I'm mistaken, my broker just takes the 0.5% on UK stocks, from the payment and forwards it to HMRC.

This is the standard case I believe.

 

[breakingbad1]

Still think the chances of being chased for it would be remote (there is a £1 tolerance write off mine wasn't much higher than that) but apparently this all gets linked to your National Insurance, etc and brokers ask for that. Absolutely certain mine did so right thing to do really. You can send them notice by e-mail (and have them correct any errors) so at least there's no letter nonsense.