The following user guide explains how to transfer shares in a UK registered limited company.
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 a form J10 is the most commonly used version. The form should be completed by both parties involved in the transfer of shares. A form J10 (and a completed sample) can be freely downloaded here.
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.
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 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
a) Complete stock transfer form
b) Stamp Duty fee
c) Return Delivery address
Send the above to one of the following addresses –
Birmingham Stamp Office
City Centre House
30 Union Street
Or if in Scotland
Edinburgh Stamp Office
4 Bankhead Avenue
Tel: 0845 603 0135
Fax: 0121 643 8381
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