AnonymousUser
Blogger
Share this content
0
2
2512

gift of shares

gift of shares

A gift of shares carries nom stamp duty but does the transfer form still require presenting to the stamp office for "nil" stamping??
knuckles

Replies

Please login or register to join the discussion.

avatar
26th Apr 2002 10:53

Share Transfers
My understanding, which may be dated, is that shares are tranferable property and that a transfer has to satisfy two conditions:a proper instrument of transfer has to be delivered to the company (s183) and the transfer must be in accordance with the procedures laid down in the articles.

The rule relating to proper instrument of transfer requires the payment of stamp duty and stamping of the transfer form. The company should reject an unstamped transfer under the Stamp Act 1891 as it could be challenged at a later date as an invalid transfer. Even if the shares have negligible value they should still be stamped. Unfortunately the stamp duty on transfers up to £1000 is £5.

Sad but true reflection of the state of our tax system.

Thanks (0)
avatar
By hbooth
26th Apr 2002 12:20

Stamp duty on gifts
The stock transfer form says that it does not have to be sent off if the transfor signs that it comes under catergory L.

Also since March 1985 duty is abolised under gifts.

Thanks (0)