United Kingdom · Reviewed 2026-08-20
UK stamp duty on shares
Buying UK shares often attracts Stamp Duty or Stamp Duty Reserve Tax (SDRT), commonly discussed at 0.5% of consideration, with electronic and paper processes differing.
SDRT vs Stamp Duty
Electronic purchases of shares frequently involve SDRT collected through the CREST system. Paper transfers can involve Stamp Duty processes. Some instruments and intermediaries have reliefs or exemptions - confirm on the trade contract note.
What it means for returns
A 0.5% purchase tax is a real drag on short-term trading strategies. Long-term investors still feel it on entry. Selling typically does not charge the same stamp on the way out (CGT is the disposal tax to study separately).
Common mistakes
- Comparing UK and U.S. all-in trading costs without including stamp.
Sources & further reading
Transaction taxes FAQ
Short answers for discovery.
What is uk stamp duty on shares?
Buying UK shares often attracts Stamp Duty or Stamp Duty Reserve Tax (SDRT), commonly discussed at 0.5% of consideration, with electronic and paper processes differing.
What is a common mistake on United Kingdom uk stamp duty on shares?
Comparing UK and U.S. all-in trading costs without including stamp.
Investor tax guides
Featured explainers that pair with the United Kingdom desk and this topic - then open All guides for the full library.
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