Markets & Products | Resources
Stamp duty | Shares
Stamp duty exemptions
Stamp Duty Reserve Tax (SDRT) is automatically collected, where due, on the purchase of shares electronically settled in CREST. Alternatively, Stamp Duty is due on non-electronic settlements where the transaction is over £1000.
SDRT & Stamp Duty apply primarily to transactions when you buy:
- Shares in a UK company.
- Shares in a foreign company with a share register in the UK.
Since 28 April 2014, SDRT & Stamp Duty have not been chargeable on transactions in eligible securities on London Stock Exchange’s AIM. Purchases made by Private Investors in an eligible security are therefore SDRT / Stamp Duty exempt. A full list of exempt issuers can be accessed at the Euroclear website.
The UK Government has introduced a new Stamp Duty Reserve Tax (SDRT) “UK Listing Relief”, exempting transfers of securities in newly listed companies on a UK regulated market from the standard 0.5% SDRT charge for a period of three years following listing, for transactions from 27 November 2025.
For more information, please refer to the following factsheets for retail investors and market participants.
Stamp duty exemption on eligible AIM
Note: This infographic is provided in both visual and text formats so that all users can access the information in the way that suits them best.
What are Stamp Duty and Stamp Duty Reserve Tax (SDRT)?
It’s a tax levied on share purchases greater than £1,000.
Is it relevant to my online execution only dealing?
Yes, Stamp Duty / SDRT is levied on shares bought online in a UK company or in a foreign company with a share register in the UK.
How much is it?
Stamp Duty / SDRT is currently levied at 0.5% on all purchases (rounded up to the nearest $0.01).
What if I trade on the phone, or by post or request to deal in certificated form?
Stamp Duty / SDRT is also levied on these forms of trading.
For electronic paperless transactions, SDRT is levied. When shares are traded using a paper stock transfer form, Stamp Duty is levied.
28 April 2014
Tax efficient ways of trading in AIM securities:
- How do I trade an AIM security?
Through a trading account with a private client stock broker.
- What is the impact on me?
On securities eligible for stamp exemption, you are no longer charged the levy reducing your overall trading costs.
- Through an ISA (AIM shares became eligible for ISA inclusion in August 2013).
How do I find a stock broker?
A list of stock brokers who are member firms of London Stock Exchange can be found on our Brokers directory
