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 here.