Tax, fees & accounts
Stamp duty
Also called Transaction tax or FTT
A tax charged on the purchase of shares in some markets.
How it works
The UK charges stamp duty reserve tax on purchases of UK shares; several other countries have similar financial transaction taxes.
It applies to purchases only in most systems, and it forms part of your cost basis.
Related terms
- Cost basisWhat you actually paid for a holding, including fees — the number every gain or loss is measured from.
- Transaction costsThe trading costs a fund incurs inside the portfolio, on top of its stated expense ratio.
- BrokerThe firm that holds your account and sends your orders to the market on your behalf.
More in Tax, fees & accounts
- Tax wrapper
- Platform fee
- Tax-loss harvesting
- Income tax on investments
- Wash sale
- FIFO and other lot methods
- Withholding tax
- Currency conversion fee
All 11 Tax, fees & accounts terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.