The principal charge (so called in the legislation) to SDRT takes place where a person agrees with another person to transfer chargeable securities for consideration in money or money’s worth (FA 1986, s. 87(1), (2)).

The charge falls due on the day on which the agreement is made, but if the agreement is conditional, on the day on which the condition is satisfied. This is the ‘relevant day’ (FA 1986, s. 87(2), (3)).

The relevant day should not be confused with the ‘accountable date’, on which the tax becomes due and payable (see ¶500-910).

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

No subscription?

Contact us to discuss your requirements.