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Frequently Asked Questions

In you have any queries, please do not hesitate to contact us. We offer a choice of service channels for all our customers.

FAQs about Taxation

Can you help me with Capital Gains Tax (CGT)?

We cannot give tax advice, but we do have a fact sheet explaining CGT and possible strategies to reduce your CGT liability. This is available from our Forms and Downloads Page. Further to that, we may be able to help with some basic questions. Please contact your local Redmayne-Bentley branch.

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How much tax will I have to pay on my shares?

Stamp Duty
Payable at 0.5 per cent on all purchases of UK Equities and Preference Shares (Irish
Stocks one per cent) and will be shown separately on your contract note (please note
this is rounded up to the next £5 for some stocks). UK Stamp Duty is not payable
for share purchases on the Alternative Investment Market (AIM) and ICAP Securities
and Derivatives Exchange (ISDX). Foreign stocks may also be subject to similar taxes.
Stamp Duty may also be payable upon the re-registration of holdings from your
account ~ where applicable these will also be debited to your account. Stamp Duty on UK growth shares was abolished on the 28th April 2014, including UK shares on the Alternative Investment Market (AIM) and ICAP Securities and Derivatives Exchange (ISDX).

Overseas/Foreign Stocks
Some overseas/foreign stocks may have a UK listing, ie. Dual listing. All Dual listed
stocks will be charged Stamp Duty. Also some securities listed in another country,
but tradable only in the UK are likewise subject to Stamp Duty or Stamp Duty
Reserve Tax (SDRT).
We endeavour to charge duty only on those stocks to which it is applicable,
Redmayne-Bentley reserves the right to charge full Stamp Duty at the time of a trade
if there is any possibility that it is due, as required by HM Revenue & Customs. Any
over payment will be refunded to the client as and when the Stamp Status is fully
agreed with HM Revenue & Customs as being ‘Stamp Exempt.’

PTM Levy
£1 is charged on all contracts over £10,000 in value. The government uses this as a
contribution towards the costs of the Panel on Takeovers and Mergers.

Taxable Income and Gains
Any income or dividends derived from your investments will be regarded as part of
your taxable income. Any gains (or losses) you make on investments will form part of
the calculation of your Capital Gains Tax position. Investments also form part of your
estate and are therefore relevant in the calculation of your Inheritance Tax position
upon death.

All these costs will be shown on your contract note, issued after each transaction.

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Will my beneficiaries be liable for inheritance tax on my shares on my death?

For individuals domiciled in the UK, inheritance tax is payable on your worldwide assets, which includes amongst other things your own home, any holiday homes, art, antiques, cash and investments in stocks, shares, bonds and funds etc. If the total value of all your assets is below the nil-rate band of £325,000 (2017/18) then there is no tax to pay. However, any value above the nil rate band is taxed at 40 per cent. Under certain circumstances, selected shares on AIM may attract 100 per cent tax relief. For further details please refer to the Tax Efficient Investments section of the website.

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