Some sources on the Internet tell that buying shares on UK stocks is assessed to a stamp tax duty of 0.5% of trade value for UK stocks and 1.0% of trade value for Irish listed stocks.

I recently bought shares in a Ireland-domiciled ETF using an EU-based broker. Following the transaction I don't see any commission to cover the stamp duty.

Please explain in which cases the stamp tax duty is not charged on UK stocks. May it vary from broker to broker?

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  • 2
    ETFs aren't stocks or shares
    – AakashM
    Apr 14, 2022 at 10:33
  • Isn't ETF just a fund that offers shares in its stock in a stock exchange? How does it differ from shares of a regular company?
    – Peggy
    Apr 14, 2022 at 10:40
  • @Peggy. It's different because it's not a company. So far as HMRC is concerned it's more like an OEIC (open-ended investment company) fund, which just happens to trade on the stock market. See gov.uk/hmrc-internal-manuals/stamp-taxes-shares-manual/…
    – timday
    Apr 17, 2022 at 22:07

1 Answer 1


You seem to be confusing/blending "ETFs" and "stocks". But they aren't the same (if "stocks" is taken to mean company shares) and different rules can apply to them.

Fortunately ETFs are fairly exempt from stamp duty these days. At https://www.justetf.com/uk/news/etf/how-to-buy-an-etf-frequently-asked-questions.html it says

Do I pay a transaction tax when I buy an ETF?

No. On most UK share purchases, there is a transaction fee called Stamp Duty charged at 0.5%. However, stamp duty is not payable on overseas domiciled ETFs that trade in London. ETFs from the main providers are all domiciled in Ireland, Luxembourg and France. Stamp duty on UK-domiciled ETFs was abolished in April 2014.

and at https://www.investcentre.co.uk/articles/index-investing-doesnt-have-be-taxing there is

ETF trades themselves are exempt from Stamp Duty in most jurisdictions, including the UK. This means that the secondary trade in the ETF is essentially exempt from Stamp Duty.

amongst other relevant but quite technical information.

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