Professional & Financial Services Stamp Taxes

Pay stamp duty on shares

How to pay stamp duty or SDRT when buying UK company shares, including rates, exemptions, and the stamping process.

UK-wide
Guide summary

When you buy UK company shares, you may need to pay Stamp Duty or Stamp Duty Reserve Tax (SDRT). Your broker usually handles SDRT automatically for electronic shares. For paper transfers, you pay 0.5% of the purchase price to HMRC by email if it's over £1,000, and get the forms stamped.

  • Pay 0.5% Stamp Duty or SDRT on most UK share purchases
  • Brokers automatically collect SDRT for electronic shares
  • Email paper transfer forms to HMRC for stamping if over £1,000
  • Submit paper forms within 30 days of signing
  • No duty on gifts, inherited shares, or shares under £1,000
  • AIM-only shares are exempt from Stamp Duty/SDRT
  • New UK-listed companies get a 3-year exemption from Nov 2025
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UK-wide

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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.

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.

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)