Stamp duty is an ad valorem tax, charged at one of three rates.

Stamp duty on an instrument effecting a transfer on sale is charged at a rate of 0.5% of the consideration (FA 1999, Sch. 13, para. 2, 3).

This is the so called standard rate.

Stamp duty on:

the issue of a bearer instrument or

the first transfer in the United Kingdom of a bearer instrument that was not chargeable on issue and would be chargeable at the standard rate if the instrument were not a bearer instrument

is charged at a rate of 1.5% of the market value of the stock constituted or transferable by a bearer instrument

(FA 1999, Sch. 15, para. 1, 2, 4).

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