Stamp duty

[jonsjon]

Does interactive brokers pay stamp duty when buying UK shares, even when located in other country than UK?

Do you have to pay stamp duty as foreigner?

 

[mrleepsmith]

SB brokers will hedge their exposure with CFD's thus incurring stamp duty. It is at their discretion as to whether they hedge any order, so save yourself the pain and go direct.

 

[Strangelydifferent]

hi JonsJon

I believe, but I don't know because I haven't tried it, that as they have a UK regulated arm just to be able to offer trading in UK shares, that this means they will have to apply the same duties.
I've read somewhere that the UK gov makes a fair bit of tax revenue out of transactions in UK shares from foreign institutions.

It doesn't all add up though, I find it difficult to imagine that the city, being awash with professional traders on the LSE has to put up with paying 0.5% every time and understand from another post here on T2W (can't remember where, sorry) that some "qualifying insitutions" don't need to bother with it, but thats as far as I've heard.

By the way, I don't think you need to pay duty on UK ETFs. Other than that you are left with "other makets, e.g. spread betting or overseas.