and transfer of certificated stock and other securities of UK based companies. It can be avoided using CFDs. Stamp Duty Reserve Tax To address the development of trades in uncertificated stock, the UK Finance Act 1986 introduced the Stamp Duty Reserve Tax (SDRT) at a rate of 0.5% on share purchases, raising around €3.8bn per year, of which 40% is paid by foreign residents. The tax is charged whether the transaction takes place in the UK or overseas, and whether either party is a resident of the UK or not. Securities issued by companies overseas are not taxed. This means that—just like the standard stamp duty—the tax is paid by foreign and UK-based investors who invest in UK incorporated companies. In other words, the tax applies to all companies which are headquartered in the UK, albeit there is a relief for intermediaries (such as market makers and large banks that are members of a qualifying exchange) as a condition of their obligation to provide liquidity. Both stamp duty and SDRT remain in place today, albeit with continued relief for intermediaries, so that about 63% of transactions are exempt from tax. SDRT accounts for the majority of revenue collected on share transactions effected through the UK's Exchanges. On average almost 90% of revenues stem from the SDRT. Only a minor part comes from Stamp Duty. Revenue is pro-cyclical with economic activity. In terms of GDP and total tax revenue, the highest values were reached during the dot.com boom years around the end of the 20th century, notably in 2000–01. In 2007–08, SDRT generated €5.37 billion in revenue (compared to 0.72 billion of the standard stamp duty). This accounts for 0.82% over total UK tax revenue or 0.30% of GDP. In 2008–09 the figure dropped to €3.67 billion (0.22% of GDP), due to reduced share prices and trading volumes as a result of the financial crisis. United States The US imposed a financial transaction tax from 1914 to 1966 that was originally 0.2% and was doubled during the Great Depression. Currently, the US imposes a $0.0042 round-trip transaction tax on security futures transactions and $21.80 per million dollars for securities transactions. The tax, known as Section 31 fee, is used to support the operation costs of the Securities and Exchange Commission (SEC). New York Both New York State and New York City had a financial transaction tax, which lasted from 1905 to