Transferring shares

When shares are transferred the ownership moves from one person to another. The consideration (if any) will be paid to the seller by the purchaser. The company will not receive any money. A Stock Transfer Form will need to be completed. See How to complete a Stock Transfer Form

Note: If the consideration is in excess of £1,000 then stamp duty will need to be paid. The above article includes an explanation of how to settle this.

The company will need to update its records to reflect the new owner(s). The fact that some shares have been transferred does not need to be reported to Companies House. The information will however be included in the next confirmation statement. Inform Direct will make processing a share transfer very easy and retain all the details for inclusion in the next confirmation statement.

The new shareholder will probably want a share certificate. You can easily create this in Inform Direct and having processed the transfer you will not have to re-enter the data again. See how do I create share certificates?

Note: If you are processing the transfer of shares and you would like the details of the new shareholder(s) to show at Companies House, you will need to file a confirmation statement. It is quite common to file confirmation statements early for this very reason. Inform Direct makes this vey easy to do.

Allotting shares

When a company allots (or issues) shares the company will receive some consideration in exchange for shares. The shares allotted will be in addition to those already in issue.

Note: When any new shares are issued Companies House must be advised.  Inform Direct will do this for you automatically by filing an electronic copy of Form SH01. However, form SH01 only records the number and type of shares being issued and how the issue changes the capital of the company. It does not give the name of the new shareholder(s). If you would like the details of the new shareholders to show at Companies House then you will need to file a confirmation statement.  It is quite common to file confirmation statements after the issue of new shares for this very reason. Inform Direct makes this very easy to do.

Stamp Duty is not payable on the issue of new shares.