Tax when you buy shares
Special share arrangements
You pay Stamp Duty Reserve Tax (SDRT) or Stamp Duty at 1.5% if you transfer shares into some ‘depositary receipt schemes’ or ‘clearance services’.
This is when the shares are transferred to a service operated by a third party (for example, a bank). The shares can then be traded free of Stamp Duty or SDRT.
Not all of these schemes work like this. Sometimes the higher rate is not charged and you pay Stamp Duty or SDRT in the normal way. Check the details of your scheme with your stockbroker.