Stamp Duties Consolidation Act 1999 section 87

Stock borrowing

Section 87 exempts stock borrowing transactions, stock returns and transfers of collateral stock from stamp duty, provided the borrower returns equivalent stock to the lender within 12 months.

• No stamp duty arises on a stock borrowing, a stock return or the transfer of collateral stock to the lender.
• Both parties to a stock borrowing must be non-individuals (typically brokers, corporate bodies, funds or similar entities).
• The borrower must return equivalent stock to the lender within 12 months of the borrowing.
• If equivalent stock is not returned within 12 months, the borrower must pay full ad valorem stamp duty within 14 days, with daily interest under section 159D and a penalty of 1% of the duty for each day it remains unpaid.