Here’s how to transfer your limited company’s shares
Transferring shares between shareholders in a UK limited company is not as simple as changing a company director. There is not a simple companies House form to be filed.
The transfer procedures first requires a completed stock transfer form.
Transferring shares between shareholders, which is from one person to another, means that shares are subject to a change in ownership. The stock transfer form is the document that details this change of legal ownership. The document requires the following information:
• Company name
• Number, value and type of shares being moved
• Name, address and signature of the person transferring the shares
• Name, address and signature of the person receiving the shares
• Date of transfer
Stamp duty – Letting HMRC know
Transfer of shares when the consideration value is more than £1,000 is subject to stamp duty at a rate of half of one percent per £1,000, for example were the total consideration is £10,000 the stamp duty payable is £50, the form to be sent to the HMRC stamp office for stamping.
Once complete the document should be kept by the person receiving the shares as a receipt. A copy should also be kept for the company records. The directors of the company will approve the transfer and make the appropriate entries into the company records, and issue a new share certificate.
Letting Companies House know about the change
The stock transfer form is not a Companies House form and so should not be filed with them. Companies House are not notified, and don’t need to be notified, until an annual return is filed. When you do file an annual return, simply detail the transfer of shares and the new shareholder in the statement of shareholding section.
