Use a stock transfer form where you wish to transfer (eg gift or sell) shares in UK limited companies. The stock transfer form records the details of the share transfer.
When should I use a stock transfer form?
Use this stock transfer form:
when you want to transfer ordinary shares in a private limited company
where you are the sole owner of the shares, the joint owner of the shares or where a limited company owens the shares
for share transfers of fully paid shares
if you are based in England, Scotland or Wales
What is included in a stock transfer form?
This stock transfer form covers:
who is transferring the shares
who the shares are being transferred to
the number of shares being transferred
how much is being paid for the shares
stamp duty certificates
What is a stock transfer form?
A stock transfer form is the standard document required for the transfer of shares in the United Kingdom.
Do I need a stock transfer form?
You will need to create a stock transfer form where you wish to transfer shares in a company to someone else.
Is stamp duty payable?
Stamp duty is a statutory tax payable on the transfer of shares by stock transfer form. You must typically pay stamp duty on shares if you buy shares using a stock transfer form and the transaction is over £1,000. You pay 0.5% stamp duty on the sale price. For more information read, Stock transfer form.
What if no stamp duty is payable?
If the share transfer is exempt from stamp duty or the consideration (ie the value paid for the shares) given for the shares is not chargeable (eg if the shares are given as a gift), one of the stock transfer form certificates (Certificate 1 or Certificate 2) needs to be completed. Which certificate needs to be completed, depends on what was paid for the shares.
If the shares are being transferred for no money or where you are claiming stamp duty relief, you won’t need to complete either certificate. If you’re claiming a relief you’ll need to send the completed stock transfer form, together with details of the relief you’re claiming to HMRC for them to consider the relief claim.
What is Certificate 1 of the stock transfer form?
Certificate 1 of the stock transfer form is completed if the money paid for the transfer of shares in £1,000 or less. Where Certificate 1 is completed, no stamp duty will be due on the transaction.
What is Certificate 2 of the stock transfer form?
What should I do after the stock transfer form is completed?
Send your stock transfer form to the Stamp Office within 30 days of the stock transfer form being signed and dated. Where stamp duty is payable, stamp duty has to be paid within 30 days of the stock transfer form being signed and dated.
Once HMRC has checked you stock transfer form and confirmed your stamp duty payments, they will send you an email including a letter:
Confirming receipt of Stamp Duty
Detailing the transactions HMRC are confirming receipt for and the reference codes
Giving assurance that HMRC will not pursue a penalty against the Registrar for registering the new ownership of the shares
Please note that during the Coronavirus (Covid-19) pandemic, HMRC is not stamping stock transfer forms.
You must send this letter, the stock transfer form and share certificate to the registrar of the company you have bought shares in. The registrar will then issue you with your own share certificate.
For more information on the transfer of shares, read Share transfers and issuing new shares.
Ask a lawyer for advice if:
you are the registered holders’ personal representative, attorney or deputy
an agent is acting on behalf of the buyer or seller
the company isn’t a limited company
the shares being transferred are unpaid or partially paid
the shares being sold aren’t ordinary shares
the company isn’t based in England, Wales or Scotland
This stock transfer form is governed by the law of England, Wales and Scotland.