Buying Shares

Buying Shares

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Hi, my son is about to buy some shares in a Ltd company and I believe that he will have to pay some stamp duty.

Can anyone tell me which form is to be used and how much the stamp duty will be, he is paying £30,000 for the shares.

Thanks

Maz
Maz K

Replies (4)

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By maz444
23rd May 2008 14:39

Thank you all for your help with this.

Maz

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By User deleted
23rd May 2008 11:24

acquistion by allotment or transfer?
Hi, you haven't said how your son is acquiring these shares. Is he purchasing them direct from the Company itself (an allotment of currently unissued shares), or is he buying them off of an existing shareholder (transfer)?

If it's an allotment then as the shares are being paid for in cash then no stamp duty is payable, and the company secretary will complete and file the necessary form 88(2) with Companies House.

However if purchasing shares via a transfer from an existing shareholder they will need to complete and sign either a J30 form (where the full amount for the shares has already been paid to the company) or a J10 form (where payment for the shares has either not yet been made to the company, or only part-payment has been made). If the transfer is being made using a J10 then your son will also need to countersign as he will be assuming the liability for the unpaid amount. As previously mentioned stamp duty at a rate of 0.5% will be payable on a transfer.

Copies of all company forms can be downloaded free of charge at http://www.formsontheweb.co.uk

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By dpickin0848
22nd May 2008 17:23

Stamp Duty
The stamp duty due is £150. Send a cheque for this amount payable to "H M Revenue & Customs" along with the stock transfer form. HMRC will then stamp the form and return it to you. Keep the stamped form as proof that the duty has been paid. The address to send the cheque and the form to is:

Birmingham Stamp Office
9th Floor
City Centre House
30 Union Street
Birmingham
B2 4AR

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By AnonymousUser
22nd May 2008 16:22

Normally 0.5%
Not sure which form to fill in but:

Stamp duty on shares is normally 0.5%. In increments of £5.

£30000 = £150 stamp duty

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