The changes follow consultations in 2023 and 2025, as well as draft legislation in July this year. Picture by Ben Dance / Treasury
Stamp Duty charged on shares is set to be replaced by late 2027 in an attempt to modernise the process.
In Budget documents released today (28 October), HM Treasury unveiled the introduction of the Securities Transfer Tax from late 2027, as part of its Finance Bill 2026-27.
Previously described as a "single tax on transfers of securities" in July, this will replace the current Stamp Duty and Stamp Duty Reserve Tax on shares (SDRT).
The changes follow consultations in 2023 and 2025, as well as draft legislation in July this year.
Currently, the standard Stamp Duty on shares is set at 0.5%, based on the price paid for the shares.
If shares are purchased electronically, SDRT applies, whereas if the shares were bought using a stock transfer form, they become eligible for Stamp Duty if the transaction is over £1,000.
Former chancellor Rachel Reeves introduced a three-year stamp duty holiday on newly listed company shares in her Budget last year in an attempt to boost the number of businesses opting for a London IPO. It came into effect on 27 November 2025.
The Treasury said it had heard from "industry feedback that cutting Stamp Taxes on Shares could boost UK capital market competitiveness".
It added: "The government recognises the potential economic benefits of such a change and will keep this under review as part of the government's wider focus on supporting UK capital markets, having appropriate regard to the fiscal implications of any changes."
Nick Britton, research director at the Association of Investment Companies, said it was "a technical change, not a change to the level of taxation" and its fiscal impact would be "almost nothing".
