Your Company Formations can assist any limited company or limited company shareholder to transfer part of its share allocation. For example, the transfer of shares between spouses and family members is a service we assist clients with because of the tax-saving opportunities that can be enjoyed by:

• shareholders in a family business through better utilisation of personal allowances and dividend tax
• the company itself on payments of National Insurance Employers’ Contributions

We take care of all the compliance required on the transfer of shares from one person to another (including the transfer of shares from one director to another).

Transfer of shares service – how it works

Preparation of stock transfer form

Our service includes the preparation of the Stock Transfer Form (J30) which a shareholder must complete to transfer ownership of their shares to a third person.

Completion of board minutes documentation

We will also complete the meeting minutes (as required under section 248 of the Companies Act 2016) which your directors must approve and then your company must issue minutes from the board meeting during which the transfer of shares was authorised.

Certificates demonstrating new company share owner and details

Our experts draw up the necessary certification showing your company’s revised share structure documenting the names and percentage stakes of each shareholder.

Transfer of shares Companies Act 2016 – frequently asked questions

How long will this take?

Once we have all the information from you that we require, you will receive the documentation required to start the process within 2 working days.

The person transferring the shares and the person to whom the shares are being transferred must complete the stock transfer form we send out. Please send that back to us when completed.

I set up my company with another formation agent. Can you help?

Yes, we can help regardless of whether you are an active client with us or have used another company formation agent to set up your company previously.

Which classes of shares can I transfer under this service?

With this service, you may only transfer ordinary company shares. We can not assist you in the transfer of non-ordinary company shares nor can we amend your Articles of Association. We advise you to contact a solicitor for either of these requirements.

What is stamp duty?

When any shares are transferred where the total value of the shares transferred is £1,000 or more, you must record this on a stock transfer form and send it within 30 days to HMRC. Upon receipt of the stock transfer form, HMRC will issue a tax demand equivalent to 0.5% of the value of the shares transferred. This stamp duty is paid by the person to whom the shares are transferred.

Will Companies House change the details about my company on their website straight away?

No. You must complete a confirmation statement (which replaced the annual return) explaining the new shareholding structure within your business for the changes to be recorded at Companies House. It is a legal requirement to do so.

Can I do this myself?

You can download both transfer of shares agreement templates and transfer of shares document samples from various internet sites. However, given the complex requirements of the Companies Act 2016 and the involvement of HMRC in any share transfer with a nominal value of £1,000 or more, we recommend that you use an experienced advisory service like that which we offer at Mr Sam Agency.