Stamp Duty – Company purchase of own shares
HMRC have revised their view as regards the liability to stamp duty due when companies have bought or intend to buy back their own shares from an overseas branch register. Previously HMRC’s position was that such a purchase was subject to stamp duty at the rate of 0.5%.
This view was recently challenged and after taking legal advice HMRC now considers that the purchase of own shares held on an overseas branch register is not subject to stamp duty.
This creates an opportunity for businesses which have paid stamp duty under these circumstances to claim a refund. A refund request must be made within two years of the original return being submitted to Companies House.