The first thing you must do is check the company's articles of association to ensure that a share transfer of this type is allowed. When Table A model articles have been adopted, share transfers are permitted.
An ordinary resolution must be passed by the board of directors either at a general meeting or by written resolution.
The stock transfer form J10 should be filled in and sent to HM Revenue & Customs for 'stamping' if the consideration for the transferred shares is over £1,000. If the consideration is over £1,000 stamp duty will be payable to HM Revenue & Customs at a rate of 0.5%.
A share certificate should be issued to the new shareholder(s) stating the company name, location of registered office, company registration number, shareholders name, share holding details and signatures.
The company's internal books and registers should be updated and Companies House must be informed of the transfer on the next annual return.
By Jo Nockels
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