Every time you buy a UK-listed share electronically, 0.5% of the purchase price disappears as Stamp Duty Reserve Tax. Your broker deducts it automatically \u2014 so automatically that most investors forget it exists. But it has a direct impact on your CGT calculation, and forgetting to include it means you’re overpaying tax.<\/p>\n
Buy \u00a310,000 of Barclays shares \u2192 SDRT of \u00a350 is deducted. Your actual cost for CGT purposes is \u00a310,050. When you sell, that extra \u00a350 reduces your taxable gain.<\/p>\n
SDRT is an allowable cost of acquisition<\/strong> under TCGA 1992 s.38(1)(b)<\/a>. It enters your Section 104 pool<\/a> alongside the share price and broker commission. The gov.uk guidance on buying shares<\/a> confirms the 0.5% rate.<\/p>\n US shares:<\/strong> No SDRT. Apple, Tesla, NVIDIA \u2014 all SDRT-free. This applies to all non-UK shares.<\/p>\n Irish-domiciled ETFs:<\/strong> No SDRT. Since most popular ETFs (Vanguard VWRL, iShares MSCI World, etc.) are domiciled in Ireland, you don’t pay it. See our ETF tax guide<\/a>.<\/p>\n Most AIM shares:<\/strong> Companies listed on AIM (the London Stock Exchange’s junior market) are generally exempt from SDRT, as part of the government’s effort to encourage investment in smaller companies. The London Stock Exchange’s AIM page<\/a> lists current members.<\/p>\n ISA purchases:<\/strong> You still pay SDRT inside an ISA (it’s deducted at the point of purchase), but since ISA gains are tax-free, the cost basis doesn’t matter for CGT purposes.<\/p>\n Over years of regular investing in UK shares, SDRT adds up:<\/p>\nWhen you don’t pay SDRT<\/h2>\n
Practical impact<\/h2>\n