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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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.
When you buy land or property you have to pay Stamp Duty Land Tax if the value of the transaction is over a certain amount.
Stamp Duty Land Tax was introduced in December 2003. Before then Stamp Duty was payable on land and property transactions. In some situations Stamp Duty - rather than Stamp Duty Land Tax - is still payable. This applies for contracts that were made before 10 July 2003 and where the transfer documents have not yet been stamped.
You can read more about how to get documents stamped and time limits for paying Stamp Duty in the guide below.
