Hi thanks for your question. My name is***** should be able to assist with this.
In brief, a pure genuine gift of shares doesn't usually attract any tax liability on receipt of the shares by the acquiring party.
If cash consideration (i.e. a payment price) was paid, then it would be 0.5% of the money paid. This isn't payable on the "market value" of the shares, and hence, if given for nothing, stamp duty isn't usually payable.
However, it depends on why they might be transferred to, because if in relation to amortising a debt etc., this counts as consideration and would be chargeable to stamp duty on the debt amount.
If you were the lucky recipient of 20% of a 6.5m company for nothing (which seems too good to be true!) then you're not likely to be liable to stamp duty on that acquisition, but I expect HMRC would be looking at this very closely indeed.
Are they referring to stamp duty?
Well, as I mentioned above, it would be stamp duty on the consideration for the acquisition.
I'm not sure where the sellers get their figures from, but then, you have to look at all the background to the transaction.
Usaully, the tax charge arises on disposal of shares - i.e. capital gains tax.
I mentioned this above. Its *NOT* market value that;s relevant.
It's the value you pay for them.
If you pay £1m, you would pay £1m x 0.5%
If you paid nothning, you would be £0 x 0.5 = nothing.
You should go and see an accountant or tax advisor before you do anything here, you need to set out the entire background as this is an incredibly complicated area. What I am explaining to you is general principles, which may not be applicable to your specific case.
I can't advise you because I don't know your background sufficiently - this is general information on how the tax charges work. You should see a specialist tax advisor and go through the background first. It is more complicated that simply "I'm not paying anything" for the reasons I have set out above.
You can find accountants in all towns and cities that can help; I wouldn't necessarily recommend one over the other, but a good sized firm is probably best given the values involved.
Thanks Jim. Please remember to rate the answer for me before leaving tonight. Thanks.