Stamp duty Help

Greetings all,

Couple of days ago I topped up my Rio Tinto shares and was charged 0.99p stamp duty fee for this purchase.

A second purchase of shares on a new stock addition charged me 0.30p stamp duty for this purchase. Can anyone explain why I’ve been charged when last year I had no such charges.

I’m extremely disappointed with the service from freetrade,I’ve had one automated message and no other message in 24 hours.

Mark

RIO is a main market stock and so subject to stamp duty. You will (and should) be charged stamp duty on all buys of this stock. Are you saying you weren’t charged any stamp duty on RIO last year?

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UK stocks (not AIM) are subject to stamp duty. It’s a tax and has nothing to do with freetrade. You could have googled that it depends on the value of your transaction, that’s why it differs between transactions.

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Thanks for your reply’s, apologies for troubling you all.

It’s no problem

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Hi just throwing this out there but does anyone know the details of how stamp duty works?
Obviously not on US stocks
But some English stocks you get charged it, some you don’t.
Some stock buys I get charged it, on another day I don’t on the same stock. Both of those this month, January.
I remember Boris lifting stamp duty on shares early Into the pandemic though I don’t remember if it was on all of them.
I think I remember him putting it back but again don’t remember if that was on to all of them.
I’m sure there must be a set of ‘logical’ rules about this, I expect nothing less from Boris.
Does anyone know what they are?

I think AIM stocks are exempt from stamp duty.

On which stock did you pay it and then not pay it? Is it possible it moved out of or in to the market to/from AIM?

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That’s only on non-electronic transactions. For online transactions stamp duty applies regardless of the size of the transaction.

Shares listed on the AIM segment can be exempt from stamp duty as long as they are not also listed on a recognised stock exchange.

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How come some stocks don’t have stamp duty
Also when is the deadline for buying stocks 4pm or 5 mins Andrew and before

If it is an ETF, it will not have a stamp duty payable. Only individual UK companies’ shares have stamp duty.

4 pm sharp :slight_smile:

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Hi everyone, I was wondering if I could get some help please? I appreciate these questions are very beginner but I’m brand new to stocks and want to be clear about everything first!
So, when I looked at a UK stock it said there was a stamp duty fee of 0.5%. My question is, if I bought a stock with that fee applied, will that be deducted from the stock buy/sell price or is it charged seperately? Is it a one time thing or is it for as long as you hold the stock? Same question but with a FX fee of 0.45% please. The last thing I want to do is have loads of money come out of my bank account seperately every so often but is that how it works? Please can someone break it down into its my basic form? For example, “the price of a share is £10 but when bought it is £9.55. This is a one time fee as part of the stock price.” Thank you so much in advance!

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Stamp duty is a one time fee when you buy the stock, and only applies to UK stocks (but not AIM stocks). See here for more details:

The FX fee you will pay on US stocks both when you buy and when you sell.

In terms of the question of if it’s included in your initial order value… I don’t think so, but I’m not sure. Ultimately, especially for UK stocks that are not fractional, it is unlikely that if you put in a £10 order of stocks you will actually buy £10 worth, as it will round it down to the nearest number of shares below £10, so in reality I’m not sure I would worry much about it, other than if your paying stamp duty or FX charges you’ve obviously got to mentally consider that you effectively start off at a “loss” because of these charges. If you’re investing for the long term though, this shouldn’t really be any concern.

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Just to caveat what I said slightly - when you buy a stock the price you see isn’t necessarily the price you will pay. So to give an example of what I meant above, lets say you attempt to buy £10 of a stock. If the price is currently £1.5 per stock, freetrade will look at your order and decide to attempt to buy 6 stocks (£9 at the current price) as if it tried to buy 7 it would go over your request (£10.5). However just because the price is £1.5 at the time you put the order in, doesn’t necessarily mean that is the price you will pay.

See here for more info:

Isn’t there a ‘clause’ somewhere about buying UK shares on the US market where the stamp duty doesn’t apply?
(I’m total noob as well).

Its where they are domicilled that counts.
Domicilled in the Channel Islands no purchase tax.
IE Henderson Far East investment trust is domicilled in Jersey so no purchase tax.

Why is there stamp duty on iq stocks. I thought aim stocks don’t have stamp duty anymore ??

They don’t. Where are you seeing this?

Newbie Questions!! :laughing:

So I have a list of companies I am interested to buy a few shares in and just going through and looking them up, reading about them etc. But this has thrown up a few questions…

  1. Some have stamp duty payable? Now from what I can gather from Google stamp duty is payable at 0.5% on all shares unless exempt and most AIM shares are exempt? There are 3 companies that I am looking at that have stamp duty payable but also don’t have particularly high share prices:
    Foresight Solar
    Hydrogen One
    Harmony Energy

Why do these three have stamp duty? I realise the simple answer is that they are likely not AIM shares but what makes them not? If that makes any sense…need more tea!

  1. Some of the companies have ongoing charges and transaction costs. Are the transaction costs one off fees? How are these paid - I mean if I only invest say £10 in each of these companies do I pay a small % as well as cost for shares when I buy? Are ongoing costs taken out of any dividends/income so I won’t suddenly get slapped for a bill a year down the line? These companies are:
    Next Energy
    Foresight Solar
    Hydrogen One
    TRIG

Thank you. Love the community here and help and advice. Its really interesting to get involved but a whole rabbit warren!