Share Transfer

acron^ · Jan 30, 2008

Hi,

I'm a bit of a business n00b so any advice is much appreciated.

One of my five shareholders recently left the company and has agreed, kindly, to sell his share back to us. I will be purchasing this share from him and then the other three remaining share holders will be alotted shares to make up the difference (so we're all equal).

My question is - How do I go through this entire process?

My business advisor says there are 'forms' and 'stamp duty' but I could really do with this explained to me in more depth and told where exactly I obtain these forms - I've looked on Companies House and HMR&C websites but had no luck.

Many thanks,

Ant

Paul Kelly ICHYB · Jan 30, 2008

Ant,

the way you are doing it sounds complicated Why doesnt he sell the shares back to the company, therefore, no jiggling everyone elses!

Speak to you accountant for specifics!

acron^ · Jan 30, 2008

Hi consultant,

My business advisor made out like this was a reaaalllyyy complicated process so I wasn't sure. Is it easy? I don't actually have an accountant but I'll e-mail a few people and see where I can get.

Thanks!

Kent Accountant · Jan 30, 2008

Purchase of own shares is too bureaucratic

Subdivide the shares from £1 to 5p then you will each have 20 shares.

The outgoing shareholder can then transfer 5 to each of you

Simple to do

Get an accountant

Antonia @limeone.com · Jan 30, 2008

It is not a complicated process. The form you need to transfer is here http://www.eformations.co.uk/forms/J30.pdf

Details on where to send it and the funds due are here
http://www.hmrc.gov.uk/so/faqs.htm#4_1

It is important that the transfer of shares is at market value, are transferred in accordance with both Company law and recorded properly in the minutes in accordance with the memo and articles of the company. This is why there is complexity about the transferring of shares and you should have accountancy advice. Transferring shares at undervalue tends to cause real problems on sale of the business and on tax investigations hence the cautious advice here.

acron^ · Feb 4, 2008

Ok, I have obtained three forms: J30 Stock Transfer, G123 Notice of Increase in Nominal Capital and Form 88(2) Return of Allotment of Shares.

On J30, there is a form titled "Form of Certificate Required Where Transfer is Not Liable To Stamp Duty" and one the transfer options ("L") indicates that the shares are being transferred "for no consideration in money". Considering the departing shareholder has verbally agreed to 'relinquish' his share (after being told they're only worth £1 each), could I file this and avoid paying Stamp Duty?

The three forms themselves seem horrendously complicated so I've got an apt. with my Accountant tomorrow.

burrella · Oct 28, 2009

Dear Acron

I am a chartered certified accountant who has done business transfers before. It is very straightforward and I charge a very competitive fixed fee, If you would like to run it pass me for an initial free consultation, please feel free to call me on 07852 193659.

Kind regards
Burrell Hamilton Accountancy and Tax Solutions Ltd

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Share Transfer

acron^

Paul Kelly ICHYB

acron^

Kent Accountant

Antonia @limeone.com

acron^

burrella

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