We found 11 online brokers that are appropriate for Trading UK Share Platforms.
Stamp duty on UK shares is an important aspect of the financial system in the United Kingdom, particularly for investors and traders. While many countries do not charge stamp duty, it may come as a surprise to those unfamiliar with UK tax regulations. Stamp duty is essentially a tax on certain transactions involving shares, and it plays a significant role in generating government revenue. For further details, visit the official UK tax website.
The origins of the UK's stamp duty trace back to 1694, during the reign of King William III. Earlier forms of taxation on transactions date back even further, to the Roman Empire in the 6th century. Today, stamp duty is commonly associated with real estate, but it also applies to trading financial instruments like stocks and shares on the London Stock Exchange.
Stamp duty on UK shares is officially called the Stamp Duty Reserve Tax (SDRT). This tax is levied at a rate of 0.5% on the purchase price of shares in UK companies. For electronic transactions, such as those made through online trading platforms, the tax is calculated and deducted automatically. For paper-based transactions, stamp duty applies only to purchases exceeding £1,000.
For instance, if a trader buys shares worth £10,000, they will pay £50 in stamp duty. Frequent traders who execute multiple transactions per week may find these costs adding up. Long-term investors, by contrast, who buy and hold shares for extended periods, typically see less impact from stamp duty. For an example, visit the official UK Government Stamp Duty page.
Before 1984, the stamp duty on shares was significantly higher at 2%. This was costly for both traders and investors. The reduction to 0.5% made transactions more affordable, though debates continue about further reducing or abolishing the tax to enhance the competitiveness of the UK market. For comparison, the New York Stock Exchange does not charge such a tax, which some argue gives it a competitive edge. Learn more about the history of stamp duty on Wikipedia.
The stamp duty is deducted automatically by brokers when traders complete a transaction. Brokers then remit the tax directly to the UK government. This simplifies the process for traders, but it's vital to account for these costs when calculating overall expenses for trades.
Not all transactions are subject to UK stamp duty. For example, shares traded on markets such as the Alternative Investment Market (AIM) or purchased through contracts for difference (CFDs) are exempt. However, in Ireland, a similar stamp duty exists at a higher rate of 1% for Irish-registered companies. For more details on exemptions, visit the official Irish Revenue website.
Looking ahead to 2025, there are discussions about potential adjustments to stamp duty. Predictions suggest that if markets face increased competition from global trading hubs like Hong Kong and Singapore, the UK may further reduce or even abolish the stamp duty to attract more investors. A notable trend is the growing use of digital trading platforms, which might influence policy changes. For predictions and insights, explore the London Stock Exchange official site.
While the stamp duty is generally applied to the purchase of UK shares, there are several important exceptions to this rule that traders and investors should be aware of. Understanding these exceptions is crucial, as they can significantly reduce or eliminate the tax burden in certain circumstances.
One of the primary exceptions is that stamp duty is not levied on shares that are not purchased in the United Kingdom. For example, if you buy £10,000 worth of shares in a UK company through an overseas broker, you can save £50 (0.5% stamp duty). More information on this exemption can be found on the official UK government page on stamp duty for shares. This is particularly relevant for international investors trading UK stocks via foreign brokers.
Another important exemption is that stamp duty does not apply to corporate bonds. If you invest £20,000 in corporate bonds issued by a UK company, you are exempt from the £100 stamp duty that would apply to a similar investment in shares. This exemption encourages long-term investments in corporate debt securities and supports corporate funding. Learn more about this on the official guidance on stamp duty exemptions.
Gifts of UK shares are also exempt from stamp duty. For instance, if you receive £5,000 worth of shares as a gift from a family member, you save £25 in stamp duty. However, when you sell these shares later, you may need to pay Capital Gains Tax (CGT) if their value increases. Read about tax implications for gifts on this UK government page on tax relief for gifts.
Shares traded on the AIM market of the London Stock Exchange are also exempt from stamp duty. For example, if you invest £15,000 in an AIM-listed company, you save £75 in stamp duty compared to investing in a main market stock. This exemption supports investment in smaller, high-growth companies. Visit the London Stock Exchange AIM page for more information.
Exchange Traded Funds (ETFs) are another category exempt from stamp duty. If you invest £50,000 in an ETF tracking the FTSE 100, you save £250 in stamp duty. This encourages diversification and liquidity. Check out this guide on ETF exemptions for more details.
Transactions involving cross-border share transfers can also be exempt. For example, if a UK company’s shares are transferred between two non-UK entities for £100,000, and the transfer falls outside UK jurisdiction, the £500 stamp duty is not applied. Legal advice is often needed in such cases. Learn more at this official page on cross-border transfer exemptions.
Finally, since 28 April 2014, investments in Open-ended Investment Companies (OEICs) or certain unit trusts have been exempt. For example, if you invest £30,000 in an OEIC, you save £150 in stamp duty. These funds offer diversification without the additional tax cost. Further details are available on the official guidance on OEIC exemptions.
Stamp duty is required in specific cases. For example, if you buy £50,000 worth of shares in a company listed on the London Stock Exchange, you will pay £250 (0.5%) in stamp duty. This applies whether you trade through a broker or investment platform. Learn about paying stamp duty from this official guide.
If you acquire an option to buy shares in a UK company at a future date, such as warrants, stamp duty is applied when the option is exercised. For instance, purchasing £100,000 worth of shares via exercised options incurs a £500 duty. Check related tax implications at this official page.
Acquiring an interest in UK shares through a trust or partnership also triggers stamp duty. If the shares’ value is £200,000, you would owe £1,000 in duty. Details on this are provided at this guidance on trusts and stamp duty.
Several situations exempt traders from stamp duty. For example, if you receive shares worth £10,000 as a gift, no duty is payable, saving you £50. More about gifts and taxes can be found at this guide on tax relief for gifts.
Subscriptions to new shares, such as during an IPO, are also exempt. If you invest £25,000 in newly issued shares, you avoid a £125 stamp duty cost. Learn more at this official page.
Similarly, purchasing units in OEICs or unit trusts is exempt. For instance, if you buy £40,000 worth of units, you save £200 in stamp duty. More information is available on this guidance for unit trusts.
When you sell shares in the United Kingdom, you may need to consider Capital Gains Tax (CGT). This tax applies if you profit from the sale of shares. Unlike stamp duty, which is charged when you purchase shares, CGT comes into play when shares have increased in value at the time of sale. This explanation will provide insights on how CGT works, with examples updated for 2025 predictions.
Capital Gains Tax is calculated based on the difference between the price you originally paid for the shares and the price you sell them for. This difference is called the capital gain. For instance, if you bought shares for £10,000 and sold them for £15,000, your gain is £5,000. You would then deduct the annual exemption threshold, which is predicted to remain around £6,000 in 2025, leaving £4,000 subject to tax.
The tax rates depend on your income bracket. For basic-rate taxpayers, CGT on shares is charged at 10%, whereas higher-rate taxpayers face a 20% rate. For example, if you are a higher-rate taxpayer and have a taxable gain of £4,000, your CGT liability would be £800.
Official guidelines and exemptions are detailed on the UK Government's Capital Gains Tax page. Accurate record-keeping is essential to calculate gains and losses properly.
Capital Gains Tax (CGT) is a tax on the profit made from selling or disposing of shares, property, or other investments. The tax applies only to the gain and not the entire sale price. For example, if you sold shares for £20,000 but originally bought them for £15,000, the taxable amount is £5,000.
In 2025, the annual exempt amount for individuals is projected to remain at £6,000. If your gains exceed this amount, the excess will be taxed at rates of 10% for basic-rate taxpayers or 20% for higher-rate taxpayers. For further details on rates and thresholds, visit the official CGT rates page.
Let’s consider an example. If you are a basic-rate taxpayer and make a gain of £10,000, subtract the £6,000 exemption to get a taxable gain of £4,000. At a 10% CGT rate, you would owe £400 in tax.
Several exemptions and strategies can help minimize or eliminate CGT liability for traders:
Individual Savings Accounts (ISAs): Gains made within ISAs are tax-free. For example, if you sold shares within an ISA for £50,000, no CGT would apply. Learn more about ISAs on the UK Government's ISA page.
Enterprise Investment Schemes (EIS): Investments in EIS offer CGT relief. If you hold shares in qualifying companies for a minimum period, you can avoid CGT on any gains. For instance, if you invested £20,000 in EIS shares and later sold them for £30,000, the £10,000 gain would be exempt.
Offsetting Losses: Capital losses can reduce taxable gains. For example, if you incurred a £5,000 loss on one investment and a £10,000 gain on another, your taxable gain would be £5,000. Guidance on reporting losses is available on the HMRC reporting page.
Transfers Between Spouses: Shares transferred between spouses are exempt from CGT. For example, if you gifted £20,000 worth of shares to your spouse, they could use their exemption to reduce the tax liability.
As of 2025, experts predict CGT rules will remain largely unchanged, but rising inflation and government fiscal policies may lead to adjustments in exemption thresholds or rates. Traders should monitor updates on the official UK tax page.
For example, if inflation increases asset values, a trader who sells shares for £50,000 in 2025 after buying them for £30,000 would have a £20,000 gain. With a £6,000 exemption, £14,000 would be taxable. At a 10% CGT rate, the tax owed would be £1,400 for a basic-rate taxpayer.
Keeping informed and utilizing strategies like ISAs, EIS, or spouse transfers can help traders reduce their tax liability while maximizing profits.
The stamp duty on UK shares is an essential factor for traders to understand when trading on UK stock markets. Currently set at 0.5%, this tax applies to the purchase of shares in UK-incorporated companies. For example, if a trader purchases £10,000 worth of shares in a UK company, the stamp duty cost will be £50. While this rate is relatively low compared to some international transaction taxes, it can significantly impact frequent traders or those making high-value trades.
Stamp duty has been part of the UK's financial system since the 17th century, influencing trading patterns and market structure over time. Modern updates, like the introduction of Stamp Duty Reserve Tax (SDRT) for electronic transactions, have streamlined its application, but the tax's core implications remain. According to official UK government data, this tax generated over £3 billion in revenue in the last fiscal year, reflecting its importance to the economy.
Looking ahead to 2025, predictions suggest that if the stamp duty remains unchanged, its revenue contribution may increase marginally due to higher trading volumes anticipated in a recovering post-pandemic economy. However, some market analysts advocate for abolishing the tax to attract more traders to the London Stock Exchange, potentially making UK markets more competitive compared to exchanges in New York or Hong Kong.
For example, a trader buying £20,000 worth of shares on the New York Stock Exchange incurs no equivalent tax, while the same transaction in the UK would cost an additional £100 in stamp duty. This discrepancy could influence trading decisions, especially for institutional investors managing large portfolios.
Exemptions exist that help mitigate the impact of stamp duty for certain traders. Investments in shares traded on the AIM market of the London Stock Exchange or in Exchange Traded Funds (ETFs) are exempt from stamp duty, making them attractive options for tax-efficient investing. Additionally, shares in Irish-registered companies and collective investment schemes like OEICs and unit trusts also avoid this tax. For further details, see the official guidance on AIM exemptions.
In 2025, if stamp duty were abolished, traders could save significant costs. For instance, a frequent trader making monthly investments of £50,000 in UK shares would save £3,000 annually. While this might boost trading activity and attract global investors, the government would need to address the revenue shortfall, potentially through adjustments in other taxes such as capital gains tax. This is discussed in depth in a recent article on Wikipedia.
Traders should carefully consider the implications of stamp duty when planning their investments. Using tax-efficient strategies, such as focusing on AIM stocks or ETFs, can help reduce transaction costs. As the financial landscape evolves, monitoring changes to regulations and tax rates will remain crucial for maintaining profitability in trading UK shares.
We have conducted extensive research and analysis on over multiple data points on Stamp Duty on Shares UK to present you with a comprehensive guide that can help you find the most suitable Stamp Duty on Shares UK. Below we shortlist what we think are the best UK Share Trading Platforms after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Stamp Duty on Shares UK.
Selecting a reliable and reputable online UK Share Trading Platforms trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade UK Share Trading Platforms more confidently.
Selecting the right online UK Share Trading Platforms trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for UK Share Trading Platforms trading, it's essential to compare the different options available to you. Our UK Share Trading Platforms brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a UK Share Trading Platforms broker that best suits your needs and preferences for UK Share Trading Platforms. Our UK Share Trading Platforms broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top UK Share Trading Platforms.
Compare UK Share Trading Platforms brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a UK Share Trading Platforms broker, it's crucial to compare several factors to choose the right one for your UK Share Trading Platforms needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are UK Share Trading Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more UK Share Trading Platforms that accept UK Share Trading Platforms clients.
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IC Markets
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Roboforex
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eToro
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XTB
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XM
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Pepperstone
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AvaTrade
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FP Markets
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EasyMarkets
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SpreadEx
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FXPro
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Regulation | Seychelles Financial Services Authority (FSA) (SD018) | RoboForex Lid is regulated by Belize FSC, License No. 000138/7, reg. number 000001272. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC) (000261/4) XM ZA (Pty) Ltd, Cyprus Securities and Exchange Commission (CySEC) (license 120/10) Trading Point of Financial Instruments Ltd, Australian Securities and Investments Commission (ASIC) (number 443670) Trading Point of Financial Instruments Pty Ltd | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC) Ava Capital Markets Australia Pty Ltd (406684), South African Financial Sector Conduct Authority (FSCA) Ava Capital Markets Pty Ltd (45984), Financial Services Agency (Japan FSA) Ava Trade Japan K.K. (1662), Financial Futures Association of Japan (FFAJ),, FFAJ, Abu Dhabi Global Markets (ADGM)(190018) Ava Trade Middle East Ltd (190018), Polish Financial Supervision Authority (KNF) AVA Trade EU Ltd, Central Bank of Ireland (C53877) AVA Trade EU Ltd, British Virgin Islands Financial Services Commission (BVI) BVI (SIBA/L/13/1049), Israel Securities Association (ISA) (514666577) ATrade Ltd, Financial Regulatory Services Authority (FRSA) | CySEC (Cyprus Securities and Exchange Commission) (371/18), ASIC AFS (Australian Securities and Investments Commission) (286354), FSP (Financial Sector Conduct Authority in South Africa) (50926), Financial Services Authority Seychelles (FSA) (130) | Cyprus Securities and Exchange Commission (CySEC) (079/07) Easy Forex Trading Ltd, Australian Securities and Investments Commission (ASIC) (Easy Markets Pty Ltd 246566), British Virgin Islands Financial Services Commission (BVI) EF Worldwide Ltd (SIBA/L/20/1135), Financial Sector Conduct Authority South Africa (FSA) EF Worldwide (PTY) Ltd (54018), FSC (Financial Services Commission) (SIBA/L/20/1135), FSCA (Financial Sector Conduct Authority) (54018) | FCA (Financial Conduct Authority) (190941), Gambling Commission (Great Britain) (8835) | FCA (Financial Conduct Authority) (509956), CySEC (Cyprus Securities and Exchange Commission) (078/07), FSCA (Financial Sector Conduct Authority) (45052), SCB (Securities Commission of The Bahamas) (SIA-F184), FSA (Financial Services Authority of Seychelles) (SD120) |
Min Deposit | 200 | 10 | 50 | No minimum deposit | 5 | No minimum deposit | 100 | 100 | 25 | No minimum deposit | 100 |
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Used By | 200,000+ | 730,000+ | 35,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 400,000+ | 200,000+ | 250,000+ | 60,000+ | 7,800,000+ |
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Platforms | MT5, MT4, MetaTrader WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), MetaTrader iPhone/iPad, MetaTrader Android Google Play, MetaTrader Mac, cTrader, cTrader Web, cTrader iPhone/iPad, cTrader iMac, cTrader Android Google Play, cTrader Automate, cTrader Copy Trading, TradingView, Virtual Private Server, Trading Servers, MT4 Advanced Trading Tools, IC Insights, Trading Central | MT4, MT5, R Mobile Trader, R StocksTrader, WebTrader, Mobile Apps, iOS (App Store), Android (Google Play), Windows | eToro Trading App, Mobile Apps, iOS (App Store), Android (Google Play), CopyTrading, Web | MT4, Mirror Trader, Web Trader, Tablet, Mobile Apps, iOS (App Store), Android (Google Play) | MT5, MT5 WebTrader, XM Apple App for iPhone, XM App for Android Google Play, Tablet: MT5 for iPad, MT5 for Android Google Play, XM App for iPad, XM App for iOS (App Store), Android (Google Play), Mobile Apps | MT4, MT5, cTrader,WebTrader, TradingView, Windows, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, Web Trading, AvaTrade App, AvaOptions, Mac Trading, AvaSocial, Mobile Apps, iOS (App Store), Android (Google Play) | MT4, MT5, TradingView, cTrader, WebTrader, Mobile Trader, Mobile Apps, iOS (App Store), Android (Google Play) | easyMarkets App, Mobile Apps, iOS (App Store), Android (Google Play), Web Platform, TradingView, MT4, MT5 | Web, Mobile Apps, iOS (App Store), Android (Google Play), iPad App, iPhone App, TradingView | MT4, MT5, cTrader, FxPro WebTrader, FxPro Mobile Apps, iOS (App Store), Android (Google Play) |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 61% of retail investor accounts lose money when trading CFDs with this provider. | 69% - 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.12% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, AO, BR, HR, GL, IS, IM, JM, FM, MC, NG, SI, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
You can compare UK Share Trading Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top UK Share Trading Platforms for 2025 article further below. You can see it now by clicking here
We have listed top UK Share Trading Platforms below.
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