Stamp Duty and Stamp Land Tax Duty
Stamp Duty
When you buy shares, you usually pay a tax or duty of 0.5% on the transaction. If you buy shares electronically Stamp Duty Reserve Tax (SDRT) is payable. For shares purchased using a stock transfer form, you will pay Stamp Duty if the transaction is over £1,000.
Stamp Duty Land Tax
- SDLT is payable on land and property transactions in England, Wales and Northern Ireland.
- Property transactions in Scotland are subject to Land and Buildings Transaction Tax.
- From April 2018, Land Transaction Tax (LTT) will replace SDLT in Wales.
Residential property
The rates apply to the portion of the total value which falls within each band.
| Consideration (£) | Rate |
| 0 – 125,000 | 0% |
| 125,001 – 250,000 | 2% |
| 250,001 – 925,000 | 5% |
| 925,001 – 1,500,000 | 10% |
| 1,500,001 and above | 12% |
From April 2016 these rates may be increased by 3% where further residential properties, costing over £40,000, are acquired.
Non-residential SDLT rates
| Consideration (£) | Rate |
| 0 – 150,000 | 0% |
| 150,001 – 250,000 | 2% |
| Over 250,000 | 5% |
Payable on consideration which falls in each band.