Does rebalancing in the auto invest pie feature means you have to pay another round of stamp duty? If so is there a way to manually rebalance within the pie.
For example instead of selling and buying shares set up an option to when invest in the pie again the money you deposit will auto fill those with less than your targeted % allocated
There is no stamp duty on a share purchase of value less than £1 because duty is rounded to nearest 1p. So if you invest £20 at a time into a pie with 20 companies at 5% each then you will have no stamp duty, even though 0.5% of £20 is £0.10. As an experiment I just made a pie of ULVR 100% and bought 99p. There was no stamp duty charged.
However, I do not advocate doing this. A full share of ULVR costs £44 and Trading 212 will have to pay the stamp duty somehow in the process of providing fractional shares.
In other words. just happily pay your taxes and be on your merry way enjoying the profits that follow
Taxes aren’t evil they are necessary for ensuring your way of life. At least stamp duty is just 0.5%, could be worse if the charge was 1-2% every time.
It’s not about being happy to pay taxes its just wanting to know how to allocate my deposits differently so I don’t have to sell and buy and waste money on stamp duty when it’s not what I wanted to do
Yes, there is loss due to spread when rebalancing. Rebalancing is something you may not wish to do very often. Vanguard rebalances some of its ETFs quarterly. More frequently than that is probably unnecessary.