Over at the ASI: tax incidence and stealth taxes.
Timmy Elsewhere
One response
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Yup, scrapping Stamp Duty was in my Bow Group report last year, was since tentatively adopted by the Conservatives as official policy.
The funny thing is, only a small part of Stamp Duty is actually Stamp Duty on share sales, most of it is Stamp Duty Reserve Tax.
SDRT is paid on redemptions of units in unit trusts (which are a mug’s game – half the dividend income gets swallowed up “management charges”) AND on the creation of “American Depositary Receipts” – and only foreigners pay that; the problem is that HMRC won’t say what the split is between the two types of SDRT.
So what should the canny investor do? Buy shares directly and hold them as long as possible. That’s that problem fixed.
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