Stamp Duty
What is stamp duty on shares?
Stamp duty is a tax of 0.5% charged when you buy UK shares. If you buy £1,000 of shares in a UK company, you pay £5 in stamp duty on top.
It’s also called Stamp Duty Reserve Tax (SDRT), but everyone just calls it stamp duty.
When do you pay it?
Only when buying UK shares. You don’t pay it when selling. Your platform adds it automatically to your purchase. You won’t see a separate bill.
What’s exempt from stamp duty?
- Funds and ETFs. No stamp duty on OEICs, ETFs, or investment trusts
- Foreign shares. No UK stamp duty on US, European, or other overseas shares
- AIM shares. Shares on the Alternative Investment Market are exempt
This is one reason funds are popular with beginners. You avoid stamp duty and get diversification in one purchase.
Key points about stamp duty
- 0.5% tax on UK shares, added when you buy
- Doesn’t apply to funds or ETFs. Only individual UK company shares
- No stamp duty when selling. Only on purchases
- Added automatically by your platform
More information
Scrimpr links to official sources so you can verify what you’ve learned.