End of an era as stamp presses decommissioned by HMRC

From mid-July, an electronic process will be adopted for the remaining transactions that still required physical stamps, such as duty paid on shares purchased on a stock transfer form.

The introduction of the new process took place during the pandemic, as traditional physical stamping could not function under COVID-19 restrictions. Having worked well as the nation was under lockdown, HMRC decided to retain the new approach.

“This is a significant day in HMRC’s history and marks a permanent change in the way that we operate. The new digital process operated well during national lockdown when it was much easier to use virtual rather than physical stamping. As this effectively amounted to a successful trial it convinced us that this was the right time to end the process of physical stamping and decommission our presses," said Angela MacDonald, HMRC deputy CEO and second permanent secretary. 

This change in process leaves the stamp presses themselves in need of new homes. Three of the presses will be retained by HMRC and installed in the newly created regional centres as a nod to the department’s lengthy history, but an appeal is now being made to search for suitable institutions that might be keen to take on one of the five remaining decommissioned presses, preserving them for their historical significance.

The now defunct stamp presses are around 100 years old and can trace their origins back to the Victorian era, but the process of stamping documents to show that tax had been paid began in England long before that. The first ‘stamp duty’ was introduced in 1694 as a temporary measure to fund the war on France. It was paid on all paper, vellum or parchment to be used for legal documents, and payment was indicated by an embossed, colourless stamp, hence the name.

“In many ways it is sad to see the presses go, almost like seeing a life-long colleague retire, but it is wonderful that HMRC is able to keep and enjoy the stamp presses themselves in so many of our new offices, where they will make decorative and informative talking points, acknowledging our past in the very places that are so important to our future," said Ms MacDonald. 

Various duties where payment was indicated by stamps were devised and withdrawn over the years, applying to anything from dice and playing cards to hats, gloves and mittens. Once ink technology improved in the 1870s, stamp presses were developed and redesigned to stamp many different values and be more efficient and secure.

Over the years the amount of different items subject to stamp duty has greatly reduced, with one of the biggest recent changes coming in 2003, when Stamp Duty Land Tax on land and property was introduced. As this was a transaction tax and returns based, physical stamps were not required, leading to the closure of many regional stamp offices across the country.

“Now what we’d most like to do is secure long-term homes for the remaining pieces, which are well crafted and represent elements of both British industrial history and financial history,” Ms MacDonald concluded.