How to Get an SDRT Refund

If you've overpaid Stamp Duty Reserve Tax (SDRT) on a share transaction — perhaps due to an error in the CREST system or incorrect information — you can claim a refund from HMRC. You have up to four years to make a claim, and HMRC will usually refund the overpaid tax plus interest.

What is SDRT?

Stamp Duty Reserve Tax (SDRT) is a tax you pay when you buy shares electronically. Most share transactions are handled through CREST, an electronic settlement system. If you pay too much SDRT, either through CREST or by other means, you're entitled to claim the overpayment back.

When you can claim an SDRT refund

You can claim a refund if you've overpaid SDRT for several reasons, including:

Exemptions applying to your transaction:

No change of beneficial owner occurred
The purchase was by a charity
Intermediary Relief applies (for principal purchases)

Incorrect or missing information in CREST:

Wrong TSS Flag setting
Trade System of Origin or Stock Lending Relief not applied
Market sale or American depositary receipt conversion back to underlying shares
Incorrect consideration (purchase price) entered
Agent indicator error

Double payment situations:

Cancelled or rebooked trades
Duplicated trades
Bulk or split payments where SDRT was paid both in and outside CREST, or paid by both parties

There's also a catch-all code for other reasons not listed above.

How to claim a refund for CREST transactions

If your overpayment relates to a transaction made through CREST, you need to write to HMRC providing:

A signed letter of claim (this can be in PDF format)
Your CREST participant ID (this must match the participant ID that paid the tax, or your claim may not be paid)
The CREST transaction ID — note this is different from the stamp transaction ID
The amount of refund you're claiming (if claiming for multiple transactions, state the amount for each individual CREST transaction ID)
The appropriate repayment code from the lists above, indicating why the refund is due

If you didn't pay the SDRT yourself, you can still make a claim if the person who paid it gives you written authority and gives up their rights to the money.

Claiming for multiple transactions

If you're claiming refunds for 15 or more transactions in a single application, you should put the information into a spreadsheet and send it by email to HMRC. The spreadsheet should include columns for:

CREST Participant ID
CREST transaction ID
Claim amount in pounds
Repayment code

How HMRC processes CREST refunds

HMRC will send you a refund, plus any interest due, for all claims with a valid CREST transaction ID. They don't carry out detailed accuracy checks immediately, but they do check a sample of claims in detail to ensure they're correct.

HMRC may contact you later to request more information to support your claim, so keep records of your transactions.

How to claim a refund for non-CREST transactions

If your SDRT payment wasn't made through CREST, you'll need to write to HMRC explaining why a refund is due. Include:

The original receipt for the SDRT that was paid (if one was issued)
The trade date
The names of the parties involved
Information about why a refund is due, with supporting documents
How the SDRT was paid
When the SDRT payment was made

HMRC will check the details of your claim before making any refund. They may request more supporting information if you haven't provided enough detail initially.

If HMRC agrees the refund, they'll repay the SDRT usually along with interest from the date when the tax was paid.

How to submit your refund claim

You can contact HMRC by email or post to make your claim. If claiming by email, include a signed letter of claim in electronic format. HMRC accepts electronic signatures.

Important: Do not email your bank details with your refund claim for security reasons. HMRC will contact you to arrange for your bank details to be sent securely once they've received your request and information.

Mark your letter "Stamp Duty Reserve Tax" whether you're claiming for CREST or non-CREST transactions.

HMRC can only repay Stamp Duty Reserve Tax by electronic transfer — they cannot send cheques.

Time limit for claims

You must claim your refund within four years of whichever is later:

When the SDRT became due, or
When the SDRT was actually paid

Missing this deadline means you'll lose your right to the refund, so check your records for any overpayments and act promptly.

Sources

Stamp Duty Reserve Tax: getting a refund

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.