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Stock Trasnfer Form Procedure

Stock Transfer Form Procedure

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A company owned 100% by one sharehlder has been in existence for only about 6 months. He wants to gift all his shares to his brother for nil consideration. Just need to understand the stock transfer procedure.

I have completed the stock transfer form but my understanding is that i dont need to send this anywhere due to nil consideration and update the share transfer on next annual return.

But how will the shares be cancelled and new certificate issued?

Thanks in advance

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By johngroganjga
09th Mar 2017 09:08

The only place you would ever have to send a completed share transfer form to is HMRC for stamp duty purposes, but if the transfer is a gift there is no stamp duty. So you are right that you don't send it anywhere.

You enter it in the company's statutory books.

You ask about "shares" being cancelled, but from what you say no shares are being cancelled - they are just being transferred from one shareholder to another.

Do you mean "share certificate"? If so, that makes more sense. Yes if the existing shareholder has been issued with a certificate for his shares he will need to return it to the company for cancellation - problem if he can't find it. It will then be up to the company and the new shareholder if he wants a share certificate. He may well not be bothered.

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JC
By A_non
09th Mar 2017 09:26

Thanks John.
Yes thats what i meant about new share certificate.
Trouble is one brother wants "out"
of anything to do with company so does not want his name etc appear anywhere including companies house.

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Replying to A_non:
By johngroganjga
09th Mar 2017 10:31

You don't mention the tax implications of the gift. Presumably the value is negligible, or you have already dealt with a holdover election.

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