Admin - Share transfers - amendments to stock transfer form
HMRC has announced a change to the stock transfer form (“STF”) to include an additional 'certificate of exemption' from stamp duty.
Stamp Duty overview
Stamp duty is a tax payable on certain documents, for example, on a transfer of shares. Stamp duty is currently chargeable on transactions where the consideration exceeds £1,000, and is payable at 0.5% of the share price, as rounded up to the nearest £5.
Where a transfer is exempt from Stamp Duty or no chargeable consideration is given for the transfer a 'certificate of exemption', which is located on the second page of the STF, should be completed.
Changes to the STF
Prior to this change the only 'certificate of exemption' included in the STF was for a transfer where the consideration was less than £1,000 and the transfer did not form part of a larger transaction or series of transactions. The new 'certificate of exemption' applies where a transfer is otherwise exempt from stamp duty or no chargeable consideration has been given for the transfer. For these purposes 'chargeable consideration' includes cash, discharging or assuming debts and shares.
If you are claiming a relief from Stamp Duty you are not required to complete either 'certificate of exemption'. Instead you should send the completed STF, and details of the relief you are claiming, to HMRC for stamping.
The new STF became available on 6 April 2012, and HMRC recommends using it from this date. HMRC has said however that it will continue to accept the older version of the form until 5 September 2012.