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Company Formations (Accountants/Solicitors)

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General FAQ's

FAQ Category - Share Capital
 
(a) What is the procedure for the transfer of shares?

The process for transferring shares to new or potential investors is simple. The existing shareholder has to fill out the relevant portion of the Stock Order Form and surrender the share certificates to the potential shareholder. The shares will officially be in the name of the new member once the appropriate enteries are made in the register of members.

Share transfers are subject to 0.5% ad valorum stamp duty on the total value of the transaction. For example, 100 £1 shares sold for £100 each generates a total value of £10,000 and stamp duty payable of £50. From 13 March 2008 transactions which generate less than £1,000 total value or consideration will become exempt from the stamp duty, this is done by signing a simple declaration on the reverse of the stock transfer form.

Any stamp duty payable is sent directly is HMRC Stamp Office at City Centre House, 30 Union Street, Birmingham B2 4AR along with the completed stock transfer form

 

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