Do I pay stamp duty when I buy shares?
The following tax facts should be viewed as an indication of the rates and allowances available and relate to the current tax year (2023/2024) unless stated otherwise. Tax law is notoriously complex and we cannot replicate every rule, nuance or exemption here. Therefore you should not make, or refrain from making, any decisions based on this information alone. If you are in any doubt as to the suitable course of action we recommend you seek tax advice. Remember tax rules can change and depend on your personal circumstances.
Yes, stamp duty or stamp duty reserve tax (SDRT) is paid on all UK equity purchases at the prevailing rate at the time of dealing.
When purchasing UK shares which are able to settle through the UK electronic settlement system CREST, you will pay 0.5% of the value of the trade as Stamp Duty Reserve Tax (“SDRT”). If purchasing “Residual Securities” – those which cannot be settled through the CREST system – you will pay 0.5%, rounded up to the nearest multiple of £5, on any trades valued at greater than £1000.
Stamp duty on Irish registered stock is currently charged at 1%.