HMRC has confirmed that a company's purchase of its own shares held on an overseas branch register is not subject to Stamp Duty at the rate of 0.5%. This is a new turn of events given that HRMC has up to now taken the view that, where a company buys back its own shares held on an overseas branch register, then the return that the company is required to send to Companies House is chargeable with Stamp Duty at the rate of 0.5% under the provisions of section 66 FA 1986.

The amended treatment has come about as a result of a challenge and subsequent legal advice taken by HMRC. Claims to repayment of Stamp Duty paid made within two years of the date of the instrument (S10 Stamp Duty Management Act 1891) may be now made by any company that has purchased its own shares held on the company's overseas branch register.

Full details on how to go about making a refund claim are produced below at 2.11.