What is the PTM levy on shares?
The PTM levy is a charge that applies when you buy or sell £10,000 or more of shares on the UK stock market. PTM stands for Panel of Takeovers and Mergers, and the charge you pay is £1 – which you’ll see on your contract note.
The money is used to help fund the Takeover Panel, which is the UK’s regulatory body responsible for administering takeover rules. Its role is to ensure all shareholders are treated equally during takeover bids.
What does the Takeover Panel do?
The Takeover Panel is an independent body which issues and administers the Takeover Code. It supervises and regulates takeovers, making sure all shareholders receive fair treatment. It also ensures there’s an orderly framework for takeover bids.
Do you pay the PTM levy on ETFs?
Nope, you don’t. The PTM levy tax doesn’t apply to shares in open-ended investment companies, which includes exchange traded funds (ETFs).
Important information: Remember that the value of investments can change, and you could lose money as well as make it. We don't offer advice, so it's important you understand the risks. If you're not sure, please speak to a financial adviser.
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Written by:
Dan Coatsworth
Dan Coatsworth is an Investment Analyst and Editor in Chief at AJ Bell. He has been with the company since December 2012 and has 19 years' experience in the industry, commenting on the markets and all things investing. He has a degree in Corporate Communications from Southampton Solent University.
Dan is heavily involved in the content published by AJ Bell, which includes providing market commentary, starring in our educational videos, writing for Shares Magazine and co-presenting our Money and Markets podcast, as well as hosting and presenting at events for customers – both in person and online.
Dan’s passion lies with educating customers all about investing and staying informed about market events. He previously worked for Teletext on the business and personal finance desks which taught him the importance of telling a story in as few words as possible. He has also contributed to Times Radio, LBC News, The Telegraph, Evening Standard, Mail on Sunday and The Week.
A fun fact Dan learned about investing early on was to not get caught up on the hype around certain stocks. He found this out himself when the first share he bought was a company trying to recover copper from a shipwreck at the bottom of the ocean… this sounded exciting but sadly didn’t make him any money! Outside of work, Dan enjoys swimming and live music.
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