CLLS Tax Law Committee response to HMRC's consultation on the Securities Transfer Tax draft legislation - September 2026

The response welcomes the clarity and brevity achieved in consolidating stamp duty and SDRT into the new regime.

It raises concern that the draft narrows the scope of the current non-marketable debenture exemption, which would bring bilateral loans and warehouse securitisation debt into charge for the first time, and proposes specific drafting fixes to preserve the exemption's effect.

It opposes making law firms "accountable persons" jointly and severally liable for STT paid on behalf of clients, and objects to removing the £1,000 de minimis threshold, warning this would burden small businesses disproportionately for little additional revenue.

It also asks for clarification of the inter-systems transfer exemption for clearance services and depositary receipt arrangements, and for draft guidance to be published before the legislation is finalised, given the disapplication of the usual re-enactment presumption.