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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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An ex-employee wants to sell his share holding in my company

Resolved Question:

An ex-employee wants to sell his share holding in my company back to me.I currently have a share holding of 55%. The transaction will involve 10 shares at £1000. Is there a Stamp Duty Impication.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

If the sum being paid for the shares is £1,000 or less and the share transfer is being done using a paper stock transfer from, then no stamp duty will be payable. If the transaction is worth more than £1,000 then stamp duty will be payable at 0.5%. Follow the process outlined here.

If the share transfer is being done electronically, then stamp duty reserve tax will be payable at 0.5% on the sum being paid for the shares which may not necessarily be what they are worth. Follow the process outlined here.

There is a stamp duty calculator here.

I hope this helps but let me know if you have any further questions.

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