Is debt advice really free?

Yes, with the charities and services listed above. They are funded so you do not have to pay. If a company asks for an up-front fee for advice, stop and check them against the Financial Conduct Authority's register first.

Will getting debt advice affect my credit score?

Talking to an adviser does not affect your credit file. Some solutions, such as a debt management plan or IVA, can be recorded on it. An adviser will explain the effects before you choose.

Will the adviser judge me?

No. Debt advisers help people from all walks of life, and what you tell them is confidential. Many people get into debt after a job loss, illness, relationship breakdown or a rise in living costs.

Does Sterlingsum give debt advice?

No. Sterlingsum is an information site and is not authorised to give debt advice. We link to organisations that are. We do not receive payment from any of the services listed on this page.

Tax on shares explained

Dividends, gains and Stamp Duty, with worked examples.

The short answer

If you hold shares outside an ISA or pension, you can pay tax in three ways. Dividends are taxed above a £500 allowance. Gains when you sell are taxed above a £3,000 yearly exempt amount, at 18% or 24%. And buying UK shares usually costs 0.5% Stamp Duty. Shares held inside an ISA avoid the first two.

Tax on dividends (2026/27)

The first £500 of dividends each year is tax-free (the dividend allowance).
Above that, basic-rate taxpayers pay 10.75%, higher-rate 35.75% and additional-rate 39.35%.
Your dividends are added on top of your other income to decide which rate applies, so you can pay more than one rate.
Example: a higher-rate taxpayer with £2,000 of dividends has £1,500 above the allowance, so the tax is about £536.

Capital Gains Tax on selling shares (2026/27)

You only pay on the gain, which is roughly what you sold for minus what you paid, and only above the £3,000 annual exempt amount.
The rate is 18% on gains that fall within your basic rate band and 24% on the rest. Higher and additional-rate taxpayers pay 24%.
Example: a higher-rate taxpayer sells shares for a £5,000 gain. £2,000 is taxable, so the tax is £480.
Losses can usually be set against gains, but you need to report them to HMRC to use them.

Stamp Duty on shares

You normally pay 0.5% when you buy existing shares in a UK company electronically. It does not apply to new share issues or to buying from fund managers. Your platform usually adds it to the order automatically.

Ways to pay less, legally

Use your ISA allowance first, because dividends and gains inside it are tax-free. See stocks and shares ISA vs cash ISA.
Invest through a pension, which adds tax relief. See pension tax relief explained.
Use each year's £3,000 gains exemption, since it does not carry forward.
Keep records of what you paid and sold, and fees, so your figures are right.

Do you have to tell HMRC?

You may need to report dividends or gains, usually through Self Assessment, if they go over certain limits. The rules depend on your total income and the size of the sale, so check the GOV.UK pages below. Also see Capital Gains Tax on a second home.

Where to learn more

Investing carries risk: the value of investments can fall as well as rise and you may get back less than you put in. This guide is for information only and is not financial or tax advice. Rules and amounts can change, so check the official pages before you rely on them.