Other Important Issues - Stamp Duty

There are some circumstances where stamp duty is applicable to transactions within a company involving the transfer of shares:

• No stamp duty is payable on the allotment of shares for cash, or capitalisation of reserves from the balance sheet (bonus issues)
• Transfers of shares attract stamp duty at the rate of 0.5% of the consideration paid for the shares (not the par value) rounded up to the nearest £5, and subject to a minimum of £5.00
• Some transfers of shares are exempt from stamp duty, such as shares gifted to a spouse or transferred in accordance with a will
• Some transfers of shares are subject to a standard rate of £5.00 if they relate to transfers to or from a nominee or where there is no change in the beneficial interest in the shares

As with many matters of Company Law, there are exceptions and complications too numerous to list here. If you have any specific questions, please do not hesitate to contact us.