Stamp taxes on share purchases

In this lesson

1. 0:00 Stamp duty on share purchases explained
2. 1:04 When stamp duty applies to company share repurchases
3. 1:34 Stamp duty reserve tax for electronic transfers
4. 2:02 Exempt transfers and reliefs
5. 3:15 Exempt securities overview
6. 3:58 Worked example: calculating stamp duty on multiple purchases

About this lesson

This knowledge is essential for advising clients on the tax implications of share transactions and for tackling exam questions involving investment purchases. The video covers two main scenarios. When shares or securities are transferred via paper stock transfer form, stamp duty applies at 0.5% of the consideration paid (if over £1,000), rounded up to the nearest £5. When transfers happen electronically, stamp duty reserve tax applies instead at the same rate but rounded to the nearest penny. The lesson also walks you through important exemptions—including new share subscriptions, gifts for no consideration, transfers between group companies, and certain securities like government stocks and unit trusts—so you know when no tax is due. You'll work through a practical example involving multiple share purchases to see how to apply these rules correctly. Understanding the distinction between paper and electronic transfers, recognising exempt transactions, and calculating the tax accurately will help you handle both exam scenarios and real-world client situations with confidence.

Duration: 5m