Tax when you buy shares

Use a stock transfer form

You must pay Stamp Duty on your shares if:

  • you buy shares through a stock transfer form
  • the transaction is over £1,000

You pay 0.5% duty, which will be rounded up to the nearest £5.

ExampleIf you buy shares worth £1050, you’ll pay 0.5% on this amount which is £5.25. You’ll round this up to £10 to pay in Stamp Duty.

For shares under £1000, you won’t need to pay anything.

You’ll need to send your stock transfer forms to the Stamp Office no later than 30 days after they’ve been dated and signed.

You’ll also need to pay your Stamp Duty to HM Revenue and Customs (HMRC).

You may get a penalty if you don’t pay on time.