Pay stamp duty on shares

Guide summary

If you buy shares through a broker or trading platform, you do not need to do anything – the 0.5% tax is deducted automatically. For paper share transfers over £1,000, you must get the stock transfer form stamped by HMRC within 30 days. Email the completed form to stampdutymailbox@hmrc.gov.uk. No duty is due on AIM-only shares or gifts.

Pay 0.5% stamp duty on electronic share purchases via broker (automatic)
Email stock transfer forms to stampdutymailbox@hmrc.gov.uk within 30 days
Round stamp duty up to the nearest £5 for paper transfers
No duty on paper transfers of £1,000 or less – mark certificate 1
No duty on AIM-only shares – use certificate 2 if a gift
Use form J30 for fully paid shares, J10 for partly paid
Allow 15 working days for HMRC to stamp your form
Keep stamped forms in your company records – no need to send to Companies House

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 2026/27

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 (opens in a new tab)

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 2026/27

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 (opens in a new tab)

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 (opens in a new tab)

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 (opens in a new tab)

Legal basis

Primary legislation and key regulations

Finance Act 1986 (Part IV - Stamp Duty Reserve Tax) Primary 1986 · UK-wide Finance Act 1999 Primary 1999 · UK-wide Stamp Act 1891 Primary 1891 · UK-wide

Browse UK legislation legislation.gov.uk

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

Legal basis

Related guides in Tax & Finance

Register as self-employed with HMRC

Set up as a sole trader

Set up an Employee Ownership Trust

Renting business premises

Use VAT Cash Accounting