I have recently bought the Enterprise Inns 6.375% 2031 bond and was surprised to be charged SDRT on the transaction by Hargreaves Lansdown who, when queried, responded -
" Corporate Bonds are liable to stamp duty on a case by case basis. All securities that we trade must settle within CREST and we have been informed by them that this bond is liable to stamp duty and have been charged accordingly on the transaction. The ultimate decision on liability lies with HMRC."
HMRC's 'SDRT Compliance' team responded thus -
"Bonds are generally not subject to SDRT unless they are capable of being converted into shares. Therefore the onward trading of a convertible bond is chargeable.
This security is classed as chargeable by Euroclear and I would suggest that you contact them directly if you feel that it has been classed incorrectly"
All my Bond purchases to date have been SDRT-exempt. Can anyone explain why not in this case?