Q&As

What are the consequences of someone transferring shares at nominal value when the shares are worth more than nominal value? Is stamp duty still payable on the actual value attributable to the shares?

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Published by a ÑÇÖÞÉ«ÇéÍø Tax expert
Published on: 28 October 2020
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As explained in Practice Note: Stamp duty on transfers—consideration and calculation, an instrument transferring stock or marketable securities, such as a stock transfer form, is chargeable to UK stamp duty unless an exemption or relief applies. The rate of duty is 0.5% of the value or amount of the consideration for the transfer (rounded up to the nearest multiple of £5). The rules determining what constitutes consideration and how to value that for stamp duty purposes are

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Jurisdiction(s):
United Kingdom
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Key definition:
Shares definition
What does Shares mean?

The CA 2006 merely provides that a share is a share in the company's share capital. A company's share capital comprises the number of shares issued by it to investors either on or after incorporation. Those investors then become the shareholders in the company. A shareholder’s shares are their personal property. By contrast, the assets of a company are owned by the company itself. Owning shares does not entitle a shareholder to any property rights in the company's assets.

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