Stamp Duty Reserve Tax (SDRT) Calculator — Share Purchase Tax

SDRT is a tax charged at 0.5% of the consideration when you buy shares or other securities electronically through a broker (settled via CREST). It applies to UK-listed shares. Your broker collects it automatically — it may not appear as a separate line on your contract note but is included in the total cost.

Stamp Duty (0.5%) applies to physical share transfers using a stock transfer form (paper certificates). SDRT (0.5%) applies to electronic share purchases settled through CREST. In practice, for most retail investors buying through an online broker, SDRT applies. Both are charged at the same rate (0.5%) for ordinary shares.

Yes. Since April 2014, UK-quoted shares on AIM (Alternative Investment Market) are exempt from both Stamp Duty and SDRT. This exemption was designed to support growth companies. Most AIM shares attract 0% SDRT, making them more tax-efficient to buy than Main Market shares.

Most ETFs available to UK investors are domiciled in Ireland or Luxembourg (e.g., iShares, Vanguard, HSBC). Shares in these funds are not UK securities and are not subject to UK SDRT. A few UK-domiciled ETFs or investment trusts that are SDRT-liable exist, but they are in the minority. Check with your broker.

Depositary Interests (DIs) are used for non-UK companies that wish to be settled through CREST. When shares are issued into a depositary system (e.g., converting foreign shares into UK-settled DIs), SDRT at 1.5% applies to the conversion. This higher rate prevents avoidance of the 0.5% rate.

No. UK government gilts and Treasury bonds are exempt from SDRT. Most corporate bonds and debentures are also exempt. Only equities (shares) and certain other securities qualify as chargeable securities for SDRT purposes.

SDRT is collected at the point of settlement (typically T+2 for UK equities). Your broker deducts it as part of the total settlement amount. You don't need to do anything — it's automatic. For ISA and SIPP purchases, SDRT is still charged (it's not sheltered by the tax wrapper).

SDRT is generally not refundable. However, if a transaction is cancelled before settlement, SDRT may be repayable. For transactions that are voided or reversed, HMRC can issue a refund. In most normal investment scenarios, SDRT is a sunk cost of share purchases.

Yes. SDRT is part of the total 'allowable acquisition cost' for capital gains tax purposes. When you later sell the shares, the SDRT paid is included in your cost basis, reducing the taxable gain. Keep records of SDRT paid for each purchase (your broker contract notes should show this).

Yes. SDRT is charged even when buying within an ISA or SIPP. The tax wrapper only shelters income and capital gains from future tax — it doesn't affect the purchase-side transaction taxes. All UK investors pay 0.5% SDRT on eligible share purchases regardless of account type.

UK SDRT only applies to securities registered on a UK register or settled through CREST. Foreign shares bought on foreign exchanges (NYSE, NASDAQ, Euronext etc.) are not subject to UK SDRT, though the foreign jurisdiction may have its own transaction taxes (e.g., French FTT).

Large institutional investors pay the same 0.5% SDRT rate as retail investors. However, market makers who are registered as 'intermediaries' can benefit from SDRT reliefs on certain transactions, particularly when acting as liquidity providers. These reliefs are not available to retail investors.