If you buy shares (unless the shares are bought electronically) then you will need to complete the stock transfer form J30 and since 5 April 2012 there has been a new version of the form.

If you buy shares valued above £1,000 using a stock transfer form then unless the share transaction qualifies for a relief or exemption then you will need to get the form stamped by HMRC and pay stamp duty. Stamp duty is charged at the rate of 0.5 % of the value of chargeable consideration.

The stock transfer form should be sent with the payment to HMRC for stamping within 30 days of the effective date of transfer to the address detailed on following link HMRC Applying to get stock transfer form stamped which has further details on payment methods and information to provide. Penalties and interest may be charged for sending the form late.

If you buy shares for £1,000 or less then you don’t have to tell HMRC about the transaction. Normally no stamp duty will be payable on the transaction. However you do still need to complete the stock transfer form with the usual information (detailed below) together with following.

1. Making sure the first exemption certificate is completed on the back of the form (if you have not paid anything for shares then certificate does not need completing).
2. Send the stock transfer form and old share certificate to the registrar of the company shares bought regardless of how much paid - it would normally be the registered office address of the company.

When completing the stock transfer forms there are two certificates on the back of the form that need to be considered. The front page will need completing with all the details of the sale including consideration, buyer, seller and date of transfer. There are two certificates on the back of the form.

1. Certificate 1 – This should be completed if the consideration you give for the share is £1,000 or less and the transfer does not form part of a larger transaction or series of transactions that exceed £1,000.
2. Certificate 2 – The second exemption certificate should be completed where the transfer exempt or the consideration given is not chargeable consideration. Exempt transfers include transfers in connection with divorce or dissolution of civil partnership HMRC - Stamp Duty reliefs or exemptions and how to apply
3. No certificate is needed if no consideration is paid for shares or a claim for relief from stamp duty is being made.  If claim for relief then details of claim needs to be sent to HMRC with stock transfer form (see HMRC link above for reliefs).

Please contact us  for further advice on stock transfers and form J30.