STSM021250 | Scope of stamp duty on shares: stamp duty: basics of a charge: A to A transfers

A transfer relating to shares in an English or Welsh company where the transferor and transferee are the same person has no operation known to law and is outside the scope of Stamp Duty. This also applies to transfers which evidence the re-allocation of shares between designated accounts of the same legal owner, usually a nominee company.

Although the stock transfer form is not chargeable to Stamp Duty there may be cases where the transaction has been effected by related documents (e.g. letters of direction) which a charge does arise on because they transfer the beneficial interest. It is those related documents that should be submitted for stamping.

In Scotland the position is different. In certain circumstances a person may transfer property to himself in a different capacity. A Scottish company may accept that a person or persons hold its shares in a trust or representative capacity unless it is prevented from doing so by its articles. The Stamp Duty chargeable will depend upon the circumstances of the case.

A transfer given to effect a change in the designation of a shareholding in the name of a nominee company will not be chargeable to Stamp Duty where there is no change of beneficial ownership.