1% stamp duty on shares?

W

Westy

Registered User
Messages
14
Hi does anyone know what the story is with the 1% stamp duty on shares ?

I found the below on revenue.ie
"A transfer of stock or marketable securities of any company incorporated in the State is liable to stamp duty at 1% of the consideration paid. Where the transfer takes place electronically through the CREST system a 1% charge also arises."
Does that mean that any person regardless purchasing shares in an irish company regardless of the market they are trading in is liable for a 1% fee? ie is it advisable not to trade irish stocks as you are already down 1%, or am i interpreting this incorrectly?
 
It is not advisable to trade any stocks. You and the other traders will break-even as a group before transaction costs. But you will be massive loss makers due to transaction costs.

It's even worse for Irish shares because of the 1% stamp duty. Even if you buy CRH in London, you will pay 1% stamp duty.

If you don't mind losing your money by trading shares, then you should probably look at other forms of gambling such as spread betting. At least spread betting makes no pretences to be investment. If the extremely unlikely event that you make any money in the long term, your profits will be tax-free as it's gambling.
 
Westy said:
ok same question but with the word " invest" instead of "trade" ;-)
Click to expand...

To the extent that you investment is already ‘down’ 1% upon purchase you could say this is true. However the broker cost would have you further in the red – working off a broker commission rate of (say) 0.5%, a share would have to gain 2% from the purchase price in order to break even for an investor (1% stamp duty + 0.5% on purchase, 0.5% on sale).
 
Hi Westy

OK, by trading I meant rapid in and out of shares to take advantage of price movements.

The 1% stamp duty on Irish shares should not deter you from investing in them for the long term. I don't think it should be a factor in choosing European or American shares over Irish shares either.
 
rob oyle said:
investor (1% stamp duty + 0.5% on purchase, 0.5% on sale).[/QUO

I'm not sure will you get these rates on trading from an Irish Broker unless you have a quantifiable trading track record.
Click to expand...
 
Brendan

If you were speculating on price movements, surely you would have taken the cost of the trade into account before placing or selling your trade.

If you buy shares for €1,000 with stamp and trading costs of 2%, why would you sell below €1,020?

But I agree, there are cheaper ways to do that sort of "trading".


Steven
www.bluewaterfp.ie
 
You must log in or register to reply here.
Back
Top