Help needed with Share Transfer - Stamp Duty...

ijholdie

I am the executor for my late Mum and Dad's estate. I am in the midst of trying to sort out my late father's shares. I have gone through probate, and have informed the Share Registrars of my father's passing. I would now like to transfer the shares into my name.

I am struggling to understand if I have to pay stamp duty, and there seem to be 2 forms to complete. I have been on the HMRC site, and still confused. It talks about chargeable considerations. I have no idea what this means.

Hoping someone can help explain things.

Many thanks in advance.

Ian

DRS1

If the shares were left to you in his will isn't the transfer exempt from stamp duty?

I take it you aren't using a solicitor to do the probate?

ijholdie

DRS1 said:

If the shares were left to you in his will isn't the transfer exempt from stamp duty?

I take it you aren't using a solicitor to do the probate?

I used a solicitor to go through IHT and probate. As part of that process I had to value the shares. Now I am going trough the process of informing the registrars of the deaths, sending them death certificates or certificate of probate. The registrars are starting to respond by asking what I would like to do with the shares - sell or transfer. I would like to transfer the shares into my name (I am a beneficiary of Mum and Dads will). But the transfer forms are confusing - hoping someone can tell give me more information and confirm if stamp duty is payable of the transfers, or if they are exempt.

wmb194

ijholdie said:

DRS1 said:

If the shares were left to you in his will isn't the transfer exempt from stamp duty?

I take it you aren't using a solicitor to do the probate?

I used a solicitor to go through IHT and probate. As part of that process I had to value the shares. Now I am going trough the process of informing the registrars of the deaths, sending them death certificates or certificate of probate. The registrars are starting to respond by asking what I would like to do with the shares - sell or transfer. I would like to transfer the shares into my name (I am a beneficiary of Mum and Dads will). But the transfer forms are confusing - hoping someone can tell give me more information and confirm if stamp duty is payable of the transfers, or if they are exempt.

Exempt.

"Which transfers are exempt

...

• shares that someone leaves to you in their will "

https://www.gov.uk/guidance/stamp-duty-reliefs-and-exemptions-on-paper-shares

https://www.rapidformations.co.uk/blog/stamp-duty-stamp-duty-reserve-tax-share-transfers/#:~:text=Share%20transfers%20that%20are%20normally,entering%20into%20a%20civil%20partnership

poseidon1

ijholdie said:

DRS1 said:

If the shares were left to you in his will isn't the transfer exempt from stamp duty?

I take it you aren't using a solicitor to do the probate?

I used a solicitor to go through IHT and probate. As part of that process I had to value the shares. Now I am going trough the process of informing the registrars of the deaths, sending them death certificates or certificate of probate. The registrars are starting to respond by asking what I would like to do with the shares - sell or transfer. I would like to transfer the shares into my name (I am a beneficiary of Mum and Dads will). But the transfer forms are confusing - hoping someone can tell give me more information and confirm if stamp duty is payable of the transfers, or if they are exempt.

It's a straight forward excercise using form J30 below -

https://doc-safe.co.uk/resources/Form-J30.pdf

On the reverse of the form you will be using the declaration for certificate 2 ( exempt transfer for no consideration) since you inherited the shares rather than bought them for value.

As shown on the form HMRC has no interest in exempt transfers, so you complete as indicated, sign off and send to the relevant registrars.

Once all share certificates are received for your registered holdings, strongly recommended you get rid of the certs and transfer the holdings to be held by a nominee investment platform such as Hargreaves Lansdown.

That course of action will greatly assist you with future dividend receipts, realtime share dealing, and the ability to facilitate transfer of the shares to a stocks and shares ISA if you are intent on holding the shares for the long term.

Please note however, you would be best advised to sell the shares and reinvest in collectives if you have little or no hands on experience in such matters.


EDIT:

An investment platform will also prepare an annual summary of dividend receipts for tax reporting purposes.

Furthermore if you edit the platform records to reflect the book costs at which you inherit the shares, you have immediate day to day visibility of the running gain/ loss on the shares for future CGT purposes on eventual  sales. 

In short, let an investment platform shoulder the hard work of investment record keeping for tax compliance purposes.

ijholdie

Many thanks for all of your help - its much appreciated.

Regarding getting rid of the paper certificates, I would like to do that, but I understand I effectively need to sell the shares then buy them back, I am guessing if I do this, there will be costs - capital gains and stamp duty?

poolboy

Yes it's the law of assent, no stamp duty on shares transfer to beneficiaries.  I didn't pay sdlt on a house, there are a few conditions to be met so not that simple an exercise.

DRS1

ijholdie said:

Many thanks for all of your help - its much appreciated.

Regarding getting rid of the paper certificates, I would like to do that, but I understand I effectively need to sell the shares then buy them back, I am guessing if I do this, there will be costs - capital gains and stamp duty?

That doesn't sound right.  You just need to have an account with a stock broker/ investment platform (eg HL) and then deposit the share certificates and signed share transfer forms with them.

There is no change of beneficial ownership (you still own the shares) so no sale and no CGT.

DRS1

Here is a page from HL on the subject
What to do with share certificates | Hargreaves Lansdown