Peter Rayney continues his review of the recent changes to stamp duty affecting owner-managed companies.
In the second part of this article, we look at some of the other recent stamp duty changes that may affect owner-managed companies on various corporate transactions.
Transfer of shares in listed and unlisted companies between connected companies
As a general rule, stamp duty is only levied on the actual consideration given for the transfer of shares or securities (this would include consideration passing by the assumption of debt). This is based on HMRC’s interpretation of FA 1999, Sch 13 para 2.
Until the recent legislative changes, the stamp duty legislation did not really have any deemed ‘market value’ rule (in contrast to most other taxes, including stamp duty land tax). In the past, it was,