Stamp Duty on Shares

pursuitofmoney

Hi guys,

A while back I bought Smurfit Kappa shares through my Hargreaves account. I was looking at the contract note and it shows I paid stamp duty of 1% instead.

The stamp duty rate should be 0.5%.

I queried this with Hargreaves and they said to me as its also listed on the Irish stock exchange which is why I got charged 1%. 0.5% to UK & 0.5% to Ireland

Surely if I'm buying shares that were listed on the London Stock exchange I would be charged only 0.5%.

Can anyone provide any light on this.

I'm I correct in my way of thinking or wrong.

Thank you in Advance

lpgm

It does look like Irish stamp duty is 1%.

https://www.revenue.ie/en/property/stamp-duty/current-rates-of-stamp-duty/shares-stocks-and-marketable-securities.aspx

pursuitofmoney

Hmm, I know the Company is based in Ireland but

The shares bought were on the London stock exchange, surely I should have been charged only 0.5% UK Duty

Or I'm I looking at this wrongly.

londoninvestor

I'm no expert on this but it does seem like Ireland imposes stamp duty on transfers of Irish property(e.g. shares in an Irish company) even when transacted outside Ireland: link

Irish_Tax_and_Customs wrote:

Stamp Duty explained

You pay Stamp Duty on certain instruments (written documents) that:

transfer ownership of property
or
are agreements to transfer ownership of property.

Property includes land, buildings, business assets (like goodwill) and shares, stocks and marketable securities (both quoted and unquoted).

You also pay Stamp Duty on certain leases and agreements to lease.
When is an instrument liable to Stamp Duty?

An instrument is liable to Stamp Duty if you execute (sign, seal or both) it:

in Ireland
or
outside Ireland, but it relates to property in Ireland or something done or to be done in Ireland.

pursuitofmoney

Great Thank you.

EdGasketTheSecond

Yeah you have to pay it. So if you don't like it avoid Irish companies; that's what I do. There are also some shares listed in London on which you pay no stamp e.g. AIM shares and main board shares which are also listed on another market where there is no stamp payable e.g. Petrofac (PFC).