Stamp duty is not payable on purchases of which assets?

Stamp duty is not payable on purchases of which assets?

• A. UK share trades
• B. Land
• C. Foreign shares, bonds, OEICs, unit trusts and ETFs
• D. Cash

Answer: (C)

Stamp duty targets the transfer of share capital and land in the UK. It does not apply to many foreign securities or investment funds, so purchases of foreign shares, bonds, OEICs, unit trusts and ETFs fall outside the tax. In contrast, buying UK shares generally incurs stamp duty (or SDRT) and buying property incurs stamp duty land tax, while cash simply isn’t subject to stamp duty. So the option describing foreign securities and investment funds is the one that isn’t charged with stamp duty.

Stamp duty targets the transfer of share capital and land in the UK. It does not apply to many foreign securities or investment funds, so purchases of foreign shares, bonds, OEICs, unit trusts and ETFs fall outside the tax. In contrast, buying UK shares generally incurs stamp duty (or SDRT) and buying property incurs stamp duty land tax, while cash simply isn’t subject to stamp duty. So the option describing foreign securities and investment funds is the one that isn’t charged with stamp duty.