Calculate stamp duty on shares using 4 simple steps in 2026

Stamp duty on shares in the UK is calculated at 0.5% of the consideration (price paid) for stock transfer forms and agreements, rounded up to the nearest £5 where applicable. Use the four steps below to compute payable duty precisely.

What is the taxable event for stamp duty on shares?

Stamp duty applies when you transfer chargeable securities for consideration, typically when shares are sold or issued for money or money's worth.
Chargeable securities include ordinary shares and many preference shares that carry economic value. Gifted shares without consideration do not attract stamp duty. Transfers executed via a stock transfer form for unlisted shares commonly trigger the duty. Electronic transfers through CREST use Stamp Duty Reserve Tax (SDRT) instead.

How do I confirm whether the transfer is chargeable?

Check whether the transfer involves consideration, the instrument type, and whether exemptions apply; if consideration exists and the instrument is not exempt, duty applies.
Consideration includes cash, debt settlement, or value given for shares. Instruments that transfer legal title include stamped stock transfer forms and written agreements. Exemptions include transfers under a court order, transfers of securities held in employee schemes meeting HMRC rules, and some reorganisations. Use the instrument text and transaction records to verify status.

Step 1: Determine the consideration amount

Establish the exact price paid for the shares, including cash, debts settled, or goods/services provided as value.
Use the sale contract, board minutes, or vendor invoice to identify the total consideration. For partial share transfers, calculate the pro rata price by multiplying the per-share price by the number of shares transferred. When the transaction includes non-cash items, convert their market value into pounds sterling at the transaction date. Record VAT-exclusive amounts; stamp duty bases exclude VAT.

Step 2: Apply the 0.5% rate to the consideration

Multiply the confirmed consideration by 0.005 to calculate the raw stamp duty amount.
For example, if consideration equals £120,000, compute £120,000 × 0.005 = £600. Use exact figures to two decimal places when necessary. For stock market or CREST transfers, compute SDRT at 0.5% on the contract value using the same base.

Step 3: Round and check minimums or special rules

Round the calculated duty up to the nearest £5 when required, and observe special rounding or minimum stamp rules on physical documents.
HMRC practice requires rounding up to the nearest £5 for stamp duty on an instrument presented for stamping. For example, a raw duty of £602 becomes £605. No duty applies for amounts below £5 in some contexts; confirm with HMRC guidance for values under £5. For CREST (SDRT), the tax is collected electronically; no physical stamp rounding applies, but HMRC rounding conventions still affect accounting entries.

Step 4: Determine who pays and how to pay

The transferee normally pays; submit the stock transfer form with payment to HMRC or let CREST collect SDRT for electronic transfers.
For paper transfers, the transferee or their agent presents the stock transfer form to the Stamp Office with the calculated payment and a covering letter. HMRC stamps the instrument and returns it. For CREST transfers, the system deducts SDRT automatically and issues a certificate. Retain stamped documents and receipts for company registers and future audits.

How do CREST transfers differ from paper transfers?

CREST transfers use Stamp Duty Reserve Tax (SDRT) collected electronically at the 0.5% rate, avoiding physical stamping but still requiring accurate calculation and reporting.
CREST handles settlement and collects SDRT where applicable. SDRT applies to electronic agreements that create and transfer chargeable securities. The payer receives a tax voucher or certificate through CREST. Companies must keep SDRT records for HMRC inspection for six years. 

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What exemptions and reliefs reduce stamp duty?

Exemptions include transfers without consideration, certain group reorganisations, and approved employee share plan transfers that meet HMRC criteria.
Group reorganisations meeting specific statutory conditions use reorganisation relief, which suspends stamp duty and records the transaction differently. Employee Benefit Trusts and some share incentive plans contain reliefs when accompanied by prescribed documents. Always verify relief eligibility with HMRC guidance and preserve supporting documents such as board resolutions, scheme rules, and valuation reports.

How to handle share transfers between connected parties or within group reorganisations?

Treat connected-party transfers as chargeable if consideration exists; apply reorganisation relief when statutory conditions are met, and document the legal basis.
Connected parties often set nominal consideration; HMRC expects the market value for tax purposes when transactions aim to avoid duty. For reorganisations, prepare statutory declarations and legal instruments that demonstrate the reorganisation meets conditions. Obtain professional tax advice when values exceed £100,000 or where complex group structures exist.

What records must the company and parties keep?

Retain the stock transfer form, stamped instrument or SDRT certificate, purchase agreement, board minutes, and payment receipts for six years.
Maintain the company’s register of members and update shareholdings after the transfer. Keep valuations and correspondence proving consideration if non-cash elements exist. HMRC audits commonly request these documents during compliance checks.

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When is professional advice recommended?

Seek specialist tax or corporate services when transactions include complex consideration, reorganisations, non-UK parties, or values above £100,000.
Large or cross-border deals involve exchange rate treatment, treaty considerations, and interplay with stamp duty land tax or other taxes. A qualified adviser validates relief claims and prepares the paperwork for HMRC submission. My Company Registration offers compliance support for directors and companies during transfers.

Stamp duty on shares in the UK is a straightforward 0.5% applied to the consideration, with rounding and instrument differences between paper and electronic transfers. Follow the four steps: confirm consideration, apply 0.5%, round per HMRC rules, and submit payment via the Stamp Office or CREST. Keep thorough records and seek specialist advice for complex restructures.

My Company Registration guides through Transfer Company Shares and execution for transfers, verification of duty exposure, and assistance with stamping or SDRT procedures for directors and companies. The service ensures compliance and accurate documentation during share transfers.

Frequently Asked Questions

How do I transfer company shares in the UK?

A UK share transfer starts with a stock transfer form, then company approval, stamp duty checks, and updates to the register of members. My Company Registration helps directors complete each compliance step for Transfer Company Shares.

When is stamp duty due on a share transfer?

Stamp duty is usually due when the share transfer includes consideration above the HMRC threshold. The rate is 0.5% of the consideration, and the form is sent for stamping before the company updates its records.

What documents are needed for a share transfer?

Most transfers require a stock transfer form, the share certificate, and approval under the company’s articles or shareholders’ agreement. My Company Registration uses these documents to support a compliant Transfer Company Shares process.

Can shares be transferred without paying stamp duty?

Yes, some share transfers are exempt, such as transfers with no consideration or transfers that qualify for statutory relief. The exemption depends on the facts, the value involved, and how the transfer is documented.

How long does a company share transfer take?

The timeline depends on document readiness, stamp duty status, and board approval. A straightforward transfer can move quickly once the stock transfer form and supporting records are complete.