What is SDRT?

Stamp Duty Reserve Tax (SDRT) is a stamp duty imposed by the UK government on electronic transactions in shares. The charge to SDRT applies worldwide, regardless of where the shares are traded or where the trader is located.

When you buy UK shares, you usually pay a tax or duty of 0.5% on the transaction value.

Tradeplace Limited automatically withholds and pays the SDRT to the HMRC.

When is it applied?

In general, you pay tax when you buy shares issued by a company established in the UK or with a share register in the UK.

When is it not applied?

You do not have to pay tax if you are given shares for nothing. Depositary receipts (i.e. GDRs) are not subject to tax either.

You will not pay the SDRT when you sell the shares. But you may need to independently pay capital gains tax to your local tax authority, depending on the regulations of your country of residence.

Tax is charged from your account

We will charge tax when you buy shares immediately, upon execution of your order. Calculation of SDRT is done on the value of the transaction.

Say you buy 100 shares of a UK company at the price of GBX 5,000.

Transaction value = 100 x 5,000 = 500,000 = 5,000 GBP

SDRT = 5,000 x 0.5% X = 25 GBP

In case your investing.one account is in a different currency, the GBP 25 will be converted to your account currency at the exchange rate offered by us.