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Stamp Duty Exemption


stamp duty exemption banner

Stamp Duty is a duty levied when the purchase of a share is recorded on a stock transfer form. Whereas Stamp Duty Reserve Tax (SDRT) is a tax for shares bought electronically (online) or without a stcok transfer form.

Stamp Duty and SDRT are levied on transactions to buys shares where the price paid is greater than £1,000. Stamp Duty and SDRT  apply primarily to transactions when you buy:

  • Shares in a UK company
  • Shares in a foreign company with a share register in the UK

From 28 April 2014, Stamp Duty and the Stamp Duty Reserve Tax (SDRT) will no longer be chargeable on transactions in eligible securities on London Stock Exchange’s AIM and High Growth Segment. Purchases made by Private Investors in an eligible security will therefore be Stamp Duty / SDRT exempt.

London Stock Exchange, together with market participants and stakeholders, has called for removal of the stamp duty tax on growth markets as a measure to help reduce the cost of capital for growth businesses over the medium to long term.

For an end investor, removal of the tax reduces the cost of investing in the security, providing an incentive to a wider set of investors to back high growth SMEs in the UK.

 

Retail Investors Factsheet

Find out more about Stamp Duty and SDTR exemption.



Stamp Duty Relief Infographic

Infographic illustrating the stamp duty exemption.




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