A share transfer (sometimes referred to as a stock transfer) may be required because of events such as the death of a shareholder or from a voluntary decision to transfer ownership.
For share transfers a stock transfer form is required and can be obtained from a law stationer for a small fee. Alternatively you may be able to obtain an electronic copy online from HM Revenue & Customs
The form states:
- the amount of shares in consideration,
- the current holder/s of the shares and their address
- a signature authorising the transfer
- the name and address of the person receiving the shares
For an unlimited company, a Common Form of transfer is required and is obtainable from the same source. In this situation the transferee needs to sign also, in order to show acceptance of unlimited liability.
The stock transfer form should be kept within the company files and Companies House updated in the next annual return.
The stock transfer is exempt from stamp duty if the transfer is valued at under £1000 and once the exemption certificate on the back of the stock transfer form is completed. If over £1000, then stamp duty (0.5% of the price paid for the shares, rounded up to the nearest £5.00 and subject to a minimum of £5.00) must be paid and impressed on the form by a HM Revenue & Customs Stamp Office before the transfer can be registered. Note that the board can be given power to decline to register a share transfer if this is stated in the Articles of Association.
Once registered the old share certificate should be cancelled and a new certificate created for the new shareholder.
Wisteria Formations and Wisteria Chartered Accountants provide full support during your company formation and can provide professional assistance to your company in the future in relation to company secretarial, accounting and tax matters.
To complete your company registration begin here: http://www.wisteriaformations.co.uk
