Tax on buying and selling shares  1. Buying shares  When you buy
UK shares, you usually pay a tax or duty on the transaction.
This is called Stamp Duty Reserve Tax (SDRT) for shares you buy
electronically and Stamp Duty when you fill in a paper stock
transfer form.  It’s deducted from what you pay for the shares -
this might be different from their current market value.
Transactions you pay tax on  You pay tax when you buy:    •
existing shares in a company incorporated in the UK   • an
option to buy shares   • shares in a foreign company that
maintains a share register in the UK  It’s not just paying for
shares in cash that’s taxable. You pay tax on the value of what
you gave in exchange for the shares.  When you don’t pay tax
You don’t have to pay tax if you:    • buy employee shareholder
shares up to £50,000   • are given shares for free   • buy a new
issue of shares in a company   • buy units in a unit trust   •
invest in an ‘open ended investment company’ (the trust or
company pays the tax, so you don