Figures checked on 24 September 2026
When you buy shares in a UK company electronically, you pay stamp duty reserve tax of 0.5% of the price. Paper transfers pay stamp duty at the same rate, rounded up to the nearest £5, on purchases over £1,000. The buyer pays and the seller doesn't, and it's charged at the moment of purchase whether the share later rises or falls. Buying inside an ISA or a pension doesn't avoid it. On trades over £10,000 in UK companies' shares there's also the PTM levy, a flat £1.50 on purchases and sales alike, which funds the Takeover Panel.
Some purchases are exempt: shares on AIM and similar growth markets, ETFs, units in funds bought from the fund manager, new shares bought when they're first issued, and foreign companies' shares — though some countries charge their own version. Shares in companies that newly list on a UK regulated market, such as the London Stock Exchange's main market, are exempt for three years after listing, under a relief that began on 27 November 2025. Investment trusts are UK companies, so they aren't exempt. The app has no stamp duty field; to include it in your cost basis, add it to the purchase's total cost.
Paid on buying, not selling — and inside an ISA or pension too.
Educational content only. It is not personal financial advice.