Scottish Mortgage Investment Trust stamp duty - ✅ Solved

I just realised that I paid stamp duty when buying, but I thought there was no stamp duty on unit investment trusts.

Am I missing something with SMT?

I hold SMT too. Where can I see the amount of stamp duty paid?

On history. Should be near the bottom:

SMT is a company, so the SD is unavoidable.

Yeah but everything I’m reading says it’s setup as an investment trust.

https://www.trustnet.com/factsheets/t/be08/scottish-mortgage-investment-trust-plc

I get that it says it’s a company also: https://www.bailliegifford.com/en/uk/individual-investors/funds/scottish-mortgage-investment-trust/about-the-trust/

But it also says it’s an investment trust. Idunno.

This will help:

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It didn’t.

image

SMT describes itself as an investment trust. So yeah.

This part of what I linked:

The main impact of this is that investors pay 0.5% stamp duty when they buy shares in UK investment trusts. No stamp duty is payable on offshore investment companies.

My last order of Utilico, an investment trust:

Didn’t pay any stamp duty.

Utilico is an offshore company, I believe, hence SD is paid for Scottish Mortgage and not for Utilico.

I’m really confused lol. Because I checked and it’s not: image

Maybe it’s my Utilico order that went wrong and I owe some stamp duty? I have no idea.

I too am foxed as I just put a dummy UEM order through with FreeTrade and SD would have been applied.
The trust ‘relocated’ from Bermuda to the UK a while ago, so as far as I can see SD should have be applied to your trade.

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Ahhh, tyvm. So yeah lol, I guess I owe T212/HMRC some money maybe. Shhhh delete the thread now :sweat_smile:

Edit: Ah no, it moved like a week after I bought lol.

So how is SMT treating you? @pipo Having a good day?

I’m up at least 10% since I started investing about a week ago. But then again lots of stocks are shooting up so nothing really special about my investment. Ask me again next year :slight_smile:

I’m slightly worried about their Chinese holdings. Who knows what the hell Trump will do to China in the near future and how that will affect SMT. Other than that … happy with it so far (it’s only been a week).

How long have you held it?

Also I was just looking at the dividends. Is it 1.86 pence per share?

I got the majority of my holding on the 1st of July. So not been holding long either, but very happy with the returns so far!

Yeah, that is the final dividend, in pence.

Dividend max is really good for clear info: https://www.dividendmax.com/united-kingdom/london-stock-exchange/investment-trusts/scottish-mortgage-investment-trust/dividends

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Jeez, I hope that dividend increases. I’d have to hold 1 million shares to get a decent payout of around €20,000 / year.

SMT is all about that growth though. Tesla, Amazon etc… They don’t really target dividend payers. I used it as a way to target companies I own, and companies that I don’t which professionals think are good players that I know nothing about.

Out of the top 10 holdings of SMT I own, Tesla, Amazon, Alibaba and Netflix. I don’t know much about the other companies apart from Tencent, which I also have exposure to through Vanguard’s emerging market fund. So overall I trust the fund managers at picking good stocks I guess.

if you are looking for a solid dividend payer the iShares UK dividend ETF (IUKD) has a pretty good yield on it of around 8%.

No I’m definitely not a dividend investor. More into growth. Was just commenting that it’s a bit low. Wouldn’t mind an extra income stream but it’s not a priority.

Any time I checked a “Top 10 Dividend Stonks!” article or youtube video, the stock price is always stagnant with no movement in a decade. I’m sure there are exceptions but that’s just my general observation.

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Looks like it took a crap today. I guess it’s heavily influenced by US markets.