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Expert answers: How do I transfer shares to a partner of my limited company?

Readers question: I want to give my shares from my limited company to my partner, so my question is how do I transfer shares to a partner of my limited company?

transfer shares to a partner of my limited companyExperts answer: The expert for this readers question is Kevin Abranches from Orange Genie.

What forms need to be submitted?

In order to transfer shares to a partner the number of shares and value will need to be agreed by the directors. A Stock Transfer Form should be completed to transfer shares in a limited company. For fully paid share the Stock Transfer Form (J30 Form) should be completed. For unpaid or partly paid shares J10 form should be completed.

Less than £1,000 worth of shares

If the consideration is £1000 or less, HMRC does not need to be notified of the transfer of shares but you must notify Companies House of the changes by filing a Confirmation Statement.

More than £1,000 worth of shares

Where the consideration exceeds £1,000 for the shares, HMRC will need to stamp the Stock Transfer Form and Stamp Duty of 0.5% on the total amount paid for the shares will chargeable. The form must be sent to HMRC within 30 days of the ‘effective date’ of the transfer.

For example, Consideration £2,000, Stamp Duty £2,300*0.5%  amount £11.5, this is rounded to the nearest £5 meaning Stamp duty payable is £10.

Where the transfer is between spouses or couples in a Civil Partnership, there will be no charge to Capital Gains tax on any future sale of the shares. A transfer between unmarried partners may trigger future Capital Gains Tax liabilities and advice should be sought.”

More limited company shares and tax basics for limited company owners.

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