Stamp tax duty on UK stocks: when does it apply?
Stamp tax duty on UK stocks: when does it apply?
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Peggy · External communityPost link
External question — Personal Finance Stack Exchange
Author: Peggy
Original post: https://money.stackexchange.com/questions/150379
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Some sources on the Internet tell that
buying shares on UK stocks
is assessed to a stamp tax duty of 0.5% of trade value for UK stocks and 1.0% of trade value for Irish listed stocks.
I recently bought shares in a Ireland-domiciled ETF using an EU-based broker. Following the transaction I don't see any commission to cover the stamp duty.
Please explain in which cases the stamp tax duty is not charged on UK stocks. May it vary from broker to broker?
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Stamp duty on UK share purchases made by non-UK residents
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When does Irish Stamp Duty apply for UK investors buying Ireland domiciled shares?
(relies on broken links).
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timday · External communityPost link
External answer — Personal Finance Stack Exchange
Author: timday
Original post: https://money.stackexchange.com/a/150462
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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You seem to be confusing/blending "ETFs" and "stocks". But they aren't the same (if "stocks" is taken to mean company shares) and different rules can apply to them.
Fortunately ETFs are fairly exempt from stamp duty these days. At
https://www.justetf.com/uk/news/etf/how-to-buy-an-etf-frequently-asked-questions.html
it says
Do I pay a transaction tax when I buy an ETF?
No. On most UK share purchases, there is a transaction fee called
Stamp Duty charged at 0.5%. However, stamp duty is not payable on
overseas domiciled ETFs that trade in London. ETFs from the main
providers are all domiciled in Ireland, Luxembourg and France. Stamp
duty on UK-domiciled ETFs was abolished in April 2014.
and at
https://www.investcentre.co.uk/articles/index-investing-doesnt-have-be-taxing
there is
ETF trades themselves are exempt from Stamp Duty in most
jurisdictions, including the UK. This means that the secondary trade
in the ETF is essentially exempt from Stamp Duty.
amongst other relevant but quite technical information.
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Quoted from Forex.com.bd-Editorial External answer — Personal Finance Stack Exchange Author: timday Source score (net votes, not local likes): 2 Original post: https://money.stackexchange.com/a/150462 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. You seem to be confusing/blending "ETFs" and "stocks". But they aren't the same (if "stocks" is taken to mean company shares) and different rules can apply to them. Fortunately ETFs are fairly exempt from stamp duty these days. At https://www.justetf.com/uk/news/etf/how-to-buy-an-etf-frequently-asked-questions.html it says Do I pay a transaction tax when I buy an ETF? No. On most UK share purchases, there is a transaction fee called Stamp Duty charged at 0.5%. However, stamp duty is not payable on overseas domiciled ETFs that trade in London. ETFs from the main providers are all domiciled in Ireland, Luxembourg and France. Stamp duty on UK-domiciled ETFs was abolished in April 2014. and at https://www.investcentre.co.uk/articles/index-investing-doesnt-have-be-taxing there is ETF trades themselves are exempt from Stamp Duty in most jurisdictions, including the UK. This means that the secondary trade in the ETF is essentially exempt from Stamp Duty. amongst other relevant but quite technical information.
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