Pay stamp duty on shares

When you buy UK company shares, you may pay stamp duty (on paper transfers) or Stamp Duty Reserve Tax (SDRT) (on electronic transfers). Both are charged at 0.5% of the purchase price.

Electronic share purchases (SDRT)

If you buy shares through a broker or trading platform, SDRT is collected automatically. Your broker adds 0.5% to your purchase and pays it to HMRC - there's nothing to file or claim.

Stamp Duty Reserve Tax (SDRT) on share purchases 2025/26

Tax on electronic share purchases through CREST or a broker.

Standard SDRT rate: 0.5% of purchase price
Clearance service rate: 1.5% (for depositary receipts)
AIM shares: Exempt - shares only on growth markets
UK Listing Relief: 3-year exemption for newly listed companies (from November 2025)
Collection method: Automatically deducted by broker

SDRT is collected automatically when you buy UK shares electronically. Your broker deducts 0.5% from your purchase and passes it to HMRC. There's nothing to file or pay separately. Shares traded only on AIM (not also on main market) are exempt.

SDRT guidance

Paper share transfers

Private company shares and some off-market purchases use paper stock transfer forms. You must get these stamped by HMRC if the consideration exceeds £1,000.

Stamp Duty on paper share transfers 2025/26

Tax on share transfers using stock transfer forms rather than electronic settlement.

Stamp Duty rate: 0.5% of consideration (rounded up to nearest £5)
Exemption threshold: £1,000 or less - no duty payable
Submission method: Email to stampdutymailbox@hmrc.gov.uk
Filing deadline: 30 days after document signed
Processing time: Approximately 15 working days

Paper share transfers are common for private company shares. Complete stock transfer form J30 (for fully paid shares) or J10 (for partly paid). HMRC no longer accepts postal submissions - you must email the form. You cannot register the share transfer until HMRC stamps the form.

Stamp shares and securities

How to stamp share transfers

Step-by-step process for stamping paper share transfer forms with HMRC.

Complete the stock transfer form – Use form J30 for fully paid shares. Enter share details, consideration, and parties.
Have the transferor sign the form – The seller signs on the left. The buyer doesn't sign J30.
Check if stamp duty applies – If consideration is £1,000 or less, complete certificate 1 on the form and skip stamping.
Calculate stamp duty at 0.5% – Round up to the nearest £5. For £10,000 consideration, duty is £50.
Email the form to HMRC – Send to stampdutymailbox@hmrc.gov.uk with a cover note. No postal submissions accepted.
Pay the stamp duty – HMRC provides payment details in their acknowledgement email.
Receive stamped form – HMRC returns the stamped form electronically within 15 working days.
Update company register – The company can now register the transfer in its register of members.

Private company share transfers commonly require stamping. The stamp proves duty has been paid and the transfer is valid. Companies House does not require stamped forms for annual confirmations, but the company should keep them for its records.

Stamp duty on shares

When you don't pay stamp duty on shares

No stamp duty or SDRT is payable on:

AIM-only shares: Shares traded only on the Alternative Investment Market (not also on main market)
Consideration of £1,000 or less: No duty on small transfers - complete certificate 1 on the form
Gifts: No consideration means no duty (but certificate 2 must be completed)
Inheritance: Shares transferred through an estate
Divorce transfers: Between spouses under court order
Newly UK-listed shares: 3-year exemption for companies listing from November 2025

Share purchases by companies

When a company buys shares in another company, the same 0.5% rate applies. However, group relief may be available for transfers between 75% group companies - the stamp duty is deferred rather than eliminated, and clawback applies if the companies leave the group within 3 years.

Stamp shares and securities

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Pay stamp duty on shares

Electronic share purchases (SDRT)

Paper share transfers

When you don't pay stamp duty on shares

Share purchases by companies

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Paper share transfers

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