Stamp Duty Visible on Order Screen


(Chris) #1

Stamp duty needs to be visible on the first but screen. I was really confused at first as I had completely forgotten it was a thing.

Got to cater for the idiots like me.


#2

Additionally the Instant Trade fee seems to be part of the Amount value - confused me at first because I throught it was asking what you want to invest on the Stock/ETF only but I now understand it is the amount you want to invest including fees.


(Denislav) #3

We will all forget about stamp duty at some point and this would be ideal. Also, you do not want a user to end up thinking that the app is charging some unknown fees, but its actually the stamp duty.


(Kenny Grant) #4

Sorry, I don’t understand, do you mean it will no longer be charged, or people will just ignore it, or something else?

I think where it is charged it should be shown. I’d like to see the costs include it by default where it was paid and a breakdown on the order screen, as otherwise you’re not seeing the true cost. At 0.5% it can be significant on larger orders. Ideally it would have a little link to an explanation that the UK government imposes this tax when buying UK shares electronically.


(Denislav) #5

What I was saying is that some people who are new or experiences could forget that there is a 0.5% charge on their order. Which as you said on large orders can be a significant charge. If the 0.5% stamp duty was just added to the total price it can be confusing to people why there is a charge if they did not know or remember about the stamp duty charges leading them to think that Freetrade is adding some unknown charges to their order.

I do think that it should be included in a total order price but also have some type of breakdown explaining that there is a 0.5% stamp duty charge added.


(Kenny Grant) #6

Ah I see. I think we agree - it should be included and at least visible when you purchase on the order screen. At the moment I think you only see it when you click to see a contract note under Activity (either on a stock or in the activity tab).


(Alex Sherwood) #8

Just to clarify, the stamp duty is displayed when you order a stock but it’s on the second screen in the process, rather than the first -


(Kenny Grant) #9

New investors have probably never hard of this tax except related to house purchases so the clearer you can make it the better - ideally it’d have a little link somewhere here to tell you what Stamp Duty is (actually Stamp Duty Reserve Tax in this case I think) - perhaps with your links at the bottom, or in a little ? circle beside the entry?

I’d also put this in a separate section called ‘Taxes’ or include Tax in the name to make it really clear that this is not a hidden fee but a government tax that you can’t avoid. At the moment if you don’t know, it’s not really clear what this is or who the money goes to. A minor point but might help avoid people constantly asking about this as you scale up with lots of users.


(James Storer) #10

Hey @kenny, thanks for this feedback. I completely agree that would be really helpful to link to what SDRT is, we already have a bottom sheet mechanism for things like this so definitely worthwhile.

It’s worth pointing out that it actually is already in a section called “Taxes and commissions” but I think it’s a fair point to actually label it something like Stamp Duty (tax) so that it’s clearer. :+1:


(Kenny Grant) #11

Yes, but then it could be either Tax or Commission, if you’re not sure what it is, that doesn’t help much :slight_smile: Tax in the name would clear that up though.

Anyway, it’s a very minor point, thanks for listening, and congratulations on the app design, it is looking great.


(Liam W) #12

I do agree with this. I’d never heard of Stamp Duty in any context other than home purchases (and that’s even not something I looked into, but have heard in passing), so without my random readings on this site I wouldn’t have know about it :slight_smile:

Liam


#13

Stamp duty (0.5% tax) would look cleaner than Stamp duty (tax)(0.5%) to avoid brackets back to back.


(Tom) #14

I hadn’t heard of stamp duty either apart from home buying. Another frustrating tax…

(By the way your name is at the top of your post. You don’t need to type your name every time.)


(Liam W) #15

I’ve always done it. I can’t stop now!


(Chris) #16

You just did :thinking:


(Liam W) #17

Yeah, that was a very bad attempt at a joke. I won’t try again.

I will stop signing my name on my posts though. That’s a holdover from older forum formats…


(Giridhar Tammana) #18

So in portfolio, does cost of purchase per share is shown including taxes?