Stamp duty when buying shares

poolielad

Been doing a bit of dealing in Lloyds banking group..... Sold a few but now wanting to buy some back, just went to make a transaction and \i get my usual cost of about £12, but now they are trying to charge me a stamp duty of around £33.... I have never had to pay this before, why would they be charging me that now... I am trying t buy around £6000 worth via Hargreaves...Is their a way to avoid this duty??

Any help (in lamens terms) would be appreciated.

jimjames

Stamp duty of 0.5% is always charged on share purchases even inside an ISA or SIPP

n15h

Stamp duty of 0.5% is charged on shares. So if you're buying around £6000, it would be around £30 stamp duty. There are some exemptions e.g. if you're buying under £1000 and buying without a broker, or buying shares of a company listed on AIM.
More info here: https://www.ii.co.uk/learn/tax/stamp-duty

kempiejon

poolielad said:

Been doing a bit of dealing in Lloyds banking group..... Sold a few but now wanting to buy some back, just went to make a transaction and \i get my usual cost of about £12, but now they are trying to charge me a stamp duty of around £33.... I have never had to pay this before, why would they be charging me that now... I am trying t buy around £6000 worth via Hargreaves...Is their a way to avoid this duty??

Any help (in lamens terms) would be appreciated.

No way to avoid the tax on Lloyds that I know of. I'm sure other share investors are intrigued to know which broker didn't charge you stamp duty previously.

If you are keen to reduce costs some will offer commisions well below £12 like iWeb £5 or some app based platforms who do not charge a fee.

DiamondLil

Hope this clarifies things:

https://www.gov.uk/tax-buy-shares

wmb194

poolielad said:

Been doing a bit of dealing in Lloyds banking group..... Sold a few but now wanting to buy some back, just went to make a transaction and \i get my usual cost of about £12, but now they are trying to charge me a stamp duty of around £33.... I have never had to pay this before, why would they be charging me that now... I am trying t buy around £6000 worth via Hargreaves...Is their a way to avoid this duty??

Any help (in lamens terms) would be appreciated.

*layman’s. If you buy in London you always have to pay stamp duty on UK domiciled companies ex Aim. There are companies listed in London that are domiciled abroad and on which stamp duty isn’t due. “Foreign” includes companies like WPP which is domiciled in Jersey.

If you want to avoid stamp duty on Lloyds and some other British companies e.g., NatWest, GSK, AstraZeneca, BP, Unilever, Vodafone and Shell you can look to buy their ADRs listed in New York but of course these are denominated in dollars and your broker may not offer them (Trading212 often does). With Unilever, Shell and Relx you can also look at their Amsterdam listings.

Foreign listings aren’t a slam dunk, though. Check how the prices compare when taking account of FX and stamp duty. Sometimes paying stamp duty in London still works out cheaper.

jimjames

n15h said:

There are some exemptions e.g. if you're buying under £1000 and buying without a broker, or buying shares of a company listed on AIM.

From that link it's only exempt under £1000 if paper certificates, electronic trading is always 0.5% regardless of deal size

poolielad

Thanks guys, maybe because i havent bought as many before I haven`t really noticed the charge.

But thank you all for your help.