Stamp duty on share transfer

Does this have a simple answer....

Is stamp duty payable on transfer of £3m shares transferred from (offshore) company to wholly owned (offshore) subsidiary - shares in a UK company. If so paid by who and when?

Or point in right direction please?

 

[David Griffiths]

Point in right direction: Stamp Taxes Helpline

Educated Guess: Yes, there will be stamp duty payable because the registrar of the UK company will only register the transfer on receipt of a stamped transfer form (or its electronic equivalent.

Stamp duty, if payable, is always payable by the purchaser of the shares.

 

Point in right direction: Stamp Taxes Helpline

Educated Guess: Yes, there will be stamp duty payable because the registrar of the UK company will only register the transfer on receipt of a stamped transfer form (or its electronic equivalent.

Stamp duty, if payable, is always payable by the purchaser of the shares.

Thanks David...I was hoping it would be exempt because as a wholly owned subsidiary in effect ownership is unchanged. But I guess looking for common sense or fairness in taxation is a mistake!!

 

[RAL]

Thanks David...I was hoping it would be exempt because as a wholly owned subsidiary in effect ownership is unchanged. But I guess looking for common sense or fairness in taxation is a mistake!!

There is an exemption from stamp duty when shares pass between two companes in a group. You have to adjudicate the transfer instruments. However the exemption does not apply, if at the time of transfer, arrangements are in place that any other person can gain control of the transferee company.

(Adjudication is the process whereby HMRC assesses if stamp duty is payable on intruments/documents.)