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Is stamp duty payable?

Issuing new shares for consideration which is not cash

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My Client wants to issue new shares in his family company to his son, in exchange for taking over his business and absorbing it  ( and him ) into his company

The business is that of a sole trader 

As I understand it, stamp duty is not normally paid on the issue of new shares for cash. But the consideration  in this case would not be cash .

Can anyone please offer me some advice or suggest who I can ask ?

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By johngroganjga
19th Feb 2020 19:07

Capital duty was abolished decades ago. I can’t remember whether or how it differentiated between cash and non-cash consideration, but it’s academic now, and of interest to historians only.

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By The Dullard
20th Feb 2020 13:50

That's interesting. Thanks John. What made you mention that?

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By johngroganjga
20th Feb 2020 16:45

Because the OP seemed to think it still applied.

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By The Dullard
20th Feb 2020 16:51

Oh, I missed that part of the question.

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By johngroganjga
20th Feb 2020 17:05

He was asking about tax payable on the proceeds of new share issues. That’s exactly what capital duty was before it was abolished.

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By The Dullard
21st Feb 2020 10:03

Oh, my bad then. I just thought he was labouring under the misapprehension that stamp duty might apply to a new share issue. Did you consider whether there were any hat tax issues?

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By johngroganjga
19th Feb 2020 19:07

.

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By Dib
20th Feb 2020 13:30

Isn't is simply that the issue of new shares s not stampable because it is not a transfer so it doesn't matter whether the issue is for cash or some other consideration?

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By The Dullard
20th Feb 2020 13:51

There's no stamp duty (or SDRT) on a new issue of shares; only their transfer from one party to another.

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