UK Shares Stamp Duty Calculator

Stamp Duty on Shares: The Basics

When you buy shares in a UK-incorporated company, the buyer pays a government tax of 0.5% of the purchase price. The seller pays nothing. On a £10,000 purchase of UK shares that is £50, collected automatically by your broker at the point of trade, so there is nothing to file or pay separately.

Technically, there are two versions of the same charge. Electronic purchases through the CREST settlement system pay Stamp Duty Reserve Tax (SDRT) at 0.5% rounded to the nearest penny, which covers virtually all modern broker trades. Paper transactions using a stock transfer form pay Stamp Duty at 0.5% rounded up to the nearest £5, and paper transfers of £1,000 or less are exempt entirely.

One extra line appears on bigger trades: the PTM levy. This is a flat £1.50 charged on UK share trades over £10,000, which funds the Panel on Takeovers and Mergers. It is not a broker fee even though it appears on your contract note. You can compare different broker charges using our Share Dealing Fee Calculator.

Which Shares Are Exempt

Plenty of purchases carry no stamp duty at all, which surprises many investors:

• AIM and growth market shares: listed on recognised growth markets and not also listed on a main market.
• ETFs: which are typically structured offshore (commonly in Ireland) outside the charge.
• Most overseas shares: including all US stocks, since the tax applies only to UK-incorporated companies. Other countries levy their own versions, such as Irish stamp duty at 1% and the French financial transaction tax at 0.3%.
• New issues: buying shares in an IPO or a fund launch directly from the company.
• Gifts and inherited shares: where no payment changes hands.
• Newly listed UK companies: following the Autumn Budget 2025 announcement of a stamp duty exemption for companies newly listing on a UK regulated market, applying for three years from their listing date.

Buying inside an ISA or SIPP does not avoid stamp duty. The 0.5% applies to qualifying UK share purchases regardless of the account wrapper, even though the wrapper shelters future gains and dividends. You can estimate your potential capital gains tax using our Capital Gains Tax Calculator or dividend tax using our Dividend Tax Calculator.

The Higher 1.5% Charge

A higher 1.5% rate applies in limited cases: transferring shares into depositary receipt schemes (such as creating American Depositary Receipts of UK stocks) or into overseas clearance services. Ordinary retail investors buying through a UK broker will almost never meet it.

Does Stamp Duty Change Your Investing Maths?

Modestly, and it rewards patience. The 0.5% is a one-off cost on purchase, so a buy-and-hold investor pays it once, while a frequent trader pays it on every round trip alongside dealing fees and spreads. Flipping a UK shareholding ten times costs 5% of your capital in stamp duty alone. It also nudges cost-conscious investors towards ETFs and US shares for exempt treatment, though investment choice should lead and tax follow.

Remember, stamp duty is an allowable cost for Capital Gains Tax, so it slightly reduces your taxable gain when you eventually sell. You can see how these costs affect your long-term compounding returns with our Compound Interest Calculator.