Which of the following items is subject to Stamp Duty?

Certificated shares with a sale price over £1,000 are subject to Stamp Duty because they represent a transfer of ownership in a company and the UK government imposes this tax on share transactions. The threshold of £1,000 is crucial because transactions involving shares priced above this amount trigger the duty, reflecting the government's intention to tax significant share sales while excluding smaller transactions.

The rationale behind the application of Stamp Duty to certificated shares is to ensure that the transfer of ownership is officially recorded and that the government can raise revenue from these transactions. When shares are sold, the buyer typically pays a percentage (currently 0.5%) of the purchase price in Stamp Duty, making these transactions clearly subject to the tax.

In contrast, options on shares, corporate bonds, and gilts do not fall under the same treatment. Options are typically seen as derivatives rather than ownership transfers, thus exempting them. Corporate bonds generally have distinct tax rules, and gilt transactions can often be structured in ways that avoid Stamp Duty altogether, such as through specific trading arrangements.

Overall, the nature of the ownership transfer and the established thresholds clarify why certificated shares with a sale price over £1,000 are specifically liable for Stamp Duty.