Stamp Duty & LBTT Scotland

The basics

When you buy shares you usually pay Stamp Duty Reserve Tax, but for paper transactions you pay Stamp Duty. When you buy property you almost always pay Stamp Duty Land Tax, but if the transaction pre-dates July 2003 you pay Stamp Duty instead.

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Stamp Duty when buying shares

When you buy shares you either pay Stamp Duty Reserve Tax or Stamp Duty, depending on what type of transaction it is.

Most share transfers are electronic, paperless transactions that are made through a stockbroker. Stamp Duty Reserve Tax is payable on paperless transactions and it is automatically deducted when the transaction is made.

If you buy shares using a stock transfer form it counts as a paper transaction. You pay Stamp Duty on paper transactions, rather than Stamp Duty Reserve Tax. But you only pay Stamp Duty when shares are transferred – you don’t have to pay it when shares are first issued.

Stamp Duty on shares

Stamp Duty Reserve Tax

IAIS can guide you through all aspects of Stamp Duty and the complexities of Stamp Duty Land Tax on Leases and Land Purchase Transactions.

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