What is the PTM levy?

4 November 2024

1 minute read time

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 £1.50 – 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).

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