stamp duty on shares - in simple terms please?

xyz123

hi - i am a small invester starting to build portfolio through stocks and shares isa.

do i pay stamp duty on share? if so how much. HMRC says if its less than £1000 nothing is payable, is that total or per line or share?

secondly how and when do i actually pay the duty? on buying or selling shares? do i need to file tax return for this?

sorry if its a lot of questions but better ask when confused! ta

grey_gym_sock

it's only paid when buying shares, and is 0.5% of what you pay for the shares. i don't think there's any exemption under £1000.

your stockbroker will automatically include stamp duty as part of the cost of buying shares, so you don't have to do anything. your contract notes should show the cost broken down into: cost of shares + stamp duty + broker's commission.

00ec25

the £1000 exemption refers to a specific situation - the transfer of shares between 2 people
you question imples you are not doing that, you are instead buying them in the normal manner so, as above, the rate is 0.5% of the price paid with no minimum or maximum

if you spend more than £10,000 you will also be charged a flat rate levy of 50 pence by the mergers board!

oldvicar

00ec25 wrote: »

the £1000 exemption refers to a specific situation - the transfer of shares between 2 people
you question imples you are not doing that, you are instead buying them in the normal manner so, as above, the rate is 0.5% of the price paid with no minimum or maximum

if you spend more than £10,000 you will also be charged a flat rate levy of 50 pence by the mergers board!

Gosh. You learn something every day.

I didn't know I needed to pay stamp duty to take shares over from a friend/relative if worth over £1K.

barak

oldvicar wrote: »

Gosh. You learn something every day.

I didn't know I needed to pay stamp duty to take shares over from a friend/relative if worth over £1K.

It depends what you mean by "take shares over" - i.e. gift 'for no consideration', or purchase.