This page is for guidance only as a courtesy. For free advice please call the Stamp Duty tax office or Companies House. Please do not call us for free advice on these forms. Thank you.
All UK companies must have at least one shareholder. If you need to transfer shares from Person A to Person B then a share transfer form needs to be completed. This form can take many shapes but this stock transfer form
is the most commonly used version. The form should be completed by both parties involved in the transfer of shares.
The share transfer form should be kept on record by the company. Both parties may also want to keep a copy.
You should also update the company’s official ‘registers’. Every company should keep an up to date register. Record the transfer of shares in the company register. Was money paid for the transfer of shares?
If no money or value was paid for the transfer of shares then there is no stamp duty (tax) to pay on the transfer. The form does not need to be recorded at Companies House. Simply keep a record of the share transfer and update the company register. The change in shareholder details is updated at Companies House when the Confirmation Statement, which has replaced the annual return, is submitted.
If a value or money was paid for the transfer of shares then stamp duty (tax) may be liable on the share transfer. The current rate of stamp duty is 0.5% of the transfer value. This has a minimum payment of £5. For example-
If you transfer the shares in the company for £50,000 then stamp duty needs to be paid. The duty owed is £250 (50,000 x 0.5% = 250)
If you transfer the shares for £200, then stamp duty needs to be paid. The duty owed will be £5 as the percentage is below £5 (200 x 0.5% = 1)
If stamp duty is to be paid send the stock transfer form along with the correct fee in the form of a UK cheque or international money order made payable to “HM Revenue and Customs”. Also provide a return delivery address for the stamped form to be sent to.Don’t forget, send
- Complete stock transfer form
- Stamp Duty fee
- Return Delivery address
Send the above to one of the following addresses:
“Stamp Duty”, Birmingham Stamp Office, 9th Floor, City Centre House, 30 Union Street, Birmingham B2 4AR
Or if in Scotland:
Edinburgh Stamp Office, Grayfield House, Spur X, 4 Bankhead Avenue, Edinburgh EH11 4BF
Tel: 0845 603 0135
Fax: 0121 643 8381
You can download a share/stock transfer form at this link - stock transfer formComment: This information is supplied for advice only. If we formed your limited company then we may be able to offer you further advice. However, we recommend that all shareholders seek professional advice from an accountant when transferring shares in a company. There may be financial implications to consider.