Stamp Duties Consolidation Act 1999 section 87A

Stock repo

Section 87A exempts stock transfers and stock returns made under a repurchase agreement from stamp duty, provided certain conditions are met.

• Both the stock transfer (from repo seller to repo buyer) and the stock return (from repo buyer back to repo seller) are exempt from stamp duty.
• The exemption applies only where neither party is an individual and the repo seller is obliged to repurchase equivalent stock within 12 months of the original transfer.
• If equivalent stock is not repurchased within 12 months, the repo buyer must pay full ad valorem stamp duty on the original transfer within 14 days of the end of that period.
• Late payment attracts daily interest of 0.0219% plus a penalty of 1% of the duty for each day it remains unpaid, and the repo buyer must keep separate records of each transaction for three years.