Concise Accountancy

Accountants and Registered Auditors

Company shares

Stamp duty on shares

Generally, stamp duty is payable on shares purchase and transfers with value more than £1000. The stamp duty rate is 0.5% of the consideration for your shares. Rounded up to the nearest £5 on each share transfer form to be stamped by HMRC.

The consideration in the context of stamp duty is it can be in cash, other stock or shares or debt.

Universally, you must send in your stock transfer form together with the stamp duty payable to HM Revenue and Customs (HMRC) within 30 days.

How to calculate your stamp duty

Example 1 : Your shares consideration exceeds £1000

Mr. Luck bought 100 shares from Good Luck Company Limited for £2350. The stamp duty payable is £2350 x 0.5 per cent = £11.75 and rounded up to the nearest £5, thus, the stamp duty payable is £15.

Example 2: Your shares consideration is less than £1000

On the other hand, no stamp duty is payable if you buy or transfer shares value is less than £1000. Accordingly, you do not require to send the stock transfer form to HM Revenue and Customs for stamping.

Notify Companies House

Besides, you must also notify Companies House of the shares transfers that took place. By all means, you may register the share transfers by filing your confirmation statement with the Registrar of Companies.

Correspondingly, you must make sure the shares transfer information entered in your confirmation statement under the shareholders’ section has no errors.

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