Stamp Duty Reserve Tax (SDRT)

Stamp Duty Reserve Tax (a charge to the fund, not directly to you), is levied on stock purchases and sales made in the course of managing the fund. It is becoming more frequently levied as a result of the increasing proportion of trading which takes place through online brokerages. Currently, SDRT is set at a flat rate of 0.5%. However, the amount that is paid is not relative to the value of the shares but rather is calculated as a proportion of what was paid for them. For example, if £100 was paid for some shares then the SDRT required would be 50p, even if the shares were actually worth £500.