As of 6 April 2012 the design of the stock transfer form is changing, due to amends by HMRC. Find out more on the latest changes…
A new certificate is being added to the reverse of the stock transfer form, which must be completed when a share transfer is ‘otherwise’ exempt from stamp duty or no chargeable consideration is given for the transfer.
Why the change to the form
HMRC changed the form due to practical problems that the legal sector and Registrars were encountering. These problems were arising from when the form was changed in 2008, due to the abolition of stamp duty fixed charges.
HMRC also decided to update the form more generally to address a specific problem that the Registrars were facing.
The Registrars didn’t feel that the pre-April 2012 form provided enough information for them to fulfil their obligations under section 17 of the Stamp Act 1891 (which, in turn, led to a number of rejected forms and additional work for both Registrars and the legal sector).
HMRC worked with representatives of both groups to see how to reduce the number of rejected forms, which resulted in the addition of the new certificate.
Using the new form
The new stock transfer form should be used for all transfers on or after 6 April 2012, although old versions of the form will continue to be accepted by Registrars until 5 September 2012.
Where the old version of the form is being used for a transfer which is otherwise exempt from stamp duty or for which no chargeable consideration is given, HMRC recommend that you do the following:
- Add the certificate manually to the reverse of the form and complete and sign it, or
- Provide the Registrar with further details, including relevant supporting documentation, about the transfer and why it is exempt from stamp duty.
From 6 April Lawpack’s Stock Transfer Form template will be updated to include the latest changes so you can rely on us that you will comply with the latest HMRC rules in future.