The Stock Transfer Form is one of the basic documents used following incorporation of a company. It is used to record the transfer of shares in a company from one shareholder to another. For use in the UK.
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This Stock Transfer Form (also referred to as a J30 Share Transfer Form) can be used to record the transfer of stock or shares between two entities. It is for use when transferring ownership of shares in any private limited company or public limited company (plc) registered in England, Wales and Scotland.
There is no prescribed form for transferring stocks and shares – that is, there is no statutory requirement to use a particular form or template as long as certain information is included. The J30 Stock Transfer Form is used where only one signatory is present. There is another form - Stock Transfer Form J10 - which is used to transfer shares when both signatories are present, but as very few companies require the signature of the transferee, this form is not provided here. The model Articles of Association contained in the Companies Act 2006 (often referred to as 'Table A') state that "shares may be transferred by means of an instrument of transfer in any usual form or any other form approved by the directors, which is executed by or on behalf of the transferor". Any company requiring the signature of both the transferor and the transferee would need to insert such a provision in the company's Articles, but this is rare.
How do I transfer my shares?
1. The first thing you need to do is download the Stock Transfer Form template. Please note: you can only use this form if you hold a share certificate. You need to complete the form by providing:
You then sign the form and give it to the transferee (the new owner) together with the share certificate and receive payment (if any).
2. The transferee completes the Stock Transfer Form with his own name and address details and the section on stamp duty if applicable (see 'Stamp Duty' below for further information). Stamp Duty is payable if more than £1,000 has been paid for the shares. Any payment under this figure or if no money has changed hands, for example a gift, then the transaction is exempt from Stamp Duty. If no Stamp Duty is due, the transferee should sign and date the exemption certificate on the second page of the Stock Transfer Form. If payment over £1,000 has been paid for the shares then the person receiving them has to pay Stamp Duty and should not complete the exemption certificate on the Stock Transfer Form.
3. If stamp duty is payable the transferee must send the Stock Transfer Form to HM Revenue & Customs (HMRC) for stamping, along with the payment. The form must be sent for stamping within 30 days of the 'effective date' of the transfer. This is normally the date the form is signed. The transferee will receive the stamped form back from HMRC usually within 5 working days.
4. The Transferee forwards the completed (and, where relevant, stamped) Stock Transfer Form and share certificate to the Registrar of the company whose shares are being transferred.
5. The Company cancels the old share certificate and issues a new share certificate to the new shareholder. There is a legal requirement to update the company's Register of Transfers and Register of Members immediately.
Stamp Duty
If you buy stocks and shares for £1,000 or less you don't normally have to pay any Stamp Duty. You also don't have to tell HMRC about the transaction. These rules have applied since 13 March 2008.
If you buy stocks and shares for more than £1,000 you have to pay Stamp Duty. The amount of Stamp Duty you pay is based on the 'consideration' you give for the stocks or shares. The consideration can be:
Stamp Duty is paid at the rate of 0.5 per cent of the value of the consideration, rounded up to the nearest £5, on each Stock Transfer instrument to be stamped. So, for example, if you buy shares using a Stock Transfer Form for £2,885, the Stamp Duty rate is 0.5 per cent. So £2,885 × 0.5 per cent = £14.42. This is rounded up to the nearest £5, which means you pay £15 Stamp Duty.
There are some share transactions that qualify for relief that can reduce the amount of Stamp Duty you pay. And there are some that are exempt from Stamp Duty altogether. Transactions that qualify for relief include:
Transfers that are exempt from Stamp Duty include:
The Stamp Office helpline can help if you need advice on whether or not you need to pay stamp duty for your share transfer. You can find details here.
You can view a sample online of a completed Stock Transfer Form by following this link: View Sample.
This document is suitable for use in the UK and includes clauses covering:
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