How to Complete a Stock Transfer Form J30 in 10 Steps
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A Stock Transfer Form: What Is It?
In order to transfer shares in the UK, a Stock Transfer Form needs to be completed. It lists the parties involved in the transfer, the name of the business holding the shares, and the payment made.
The amount paid for the stocks and shares is referred to as consideration. In the event that the buyer pays cash for the shares, you must disclose the amount. It needs to be documented if there is no consideration. In consideration additional stocks or debt repayment may also be taken into account.
How to Complete a Stock Transfer Form in 10 Steps
In the United Kingdom, a stock transfer form (also known as form J30) is the standard paperwork necessary for the transfer of shares. It includes information about both the seller and the buyer of the shares, as well as the type and quantity of shares being transferred and the sum paid by the buyer. This article is part of a series on the share transfer process aimed at both companies and share buyers and sellers.
Once the stock transfer form is finished and accepted, the corporation needs to keep a record of the information. There are situations in which the form needs to be forwarded to HMRC; we go over those situations below.
Filling out a stock transfer form with black ink and block capitals is a typical procedure. If something goes wrong, mark it up, make the necessary corrections, and initial it (or start over). Don't attach labels to the form or apply correction fluid.
1. Money for Consideration
Enter the amount being paid here if shares are being transferred in exchange for cash. Enter "NIL" in its place if there is no money to be paid for the shares.
2. Complete Name of the Project
Here is where you provide the name of the corporation that owns the shares.
3. Detailed Explanation of Security
On the stock transfer form, indicate the class or kind of shares being transferred, such as Ordinary shares valued at £1.00. The share certificate covering these shares contains the description that should be used.
4. Quantity or number of Stocks, Shares, or Other Securities
Indicate how many shares you want to transfer in words and numbers. In the box on the right, you should provide the quantity of units if shares or stock are packaged in units.
5. The Registered Holder's Name and Address
In the case of a joint shareholding, this should contain the names of each joint shareholder as well as the current shareholder. The address of the first-named joint stakeholder in a joint shareholding should be the only address entered.
If a shareholder other than the one listed is transferring the shares, kindly indicate which capacity they will be signing the stock transfer document. For instance, the complete names of the designated personal representative(s) for a deceased shareholder must be mentioned.
Only in cases when the existing shareholding has a specific account designation or reference connected does the "Account designation" field need to be filled out.
6. Signature(s)
The individual who is transferring the shares has signed this. To transfer a joint shareholding, the seller (or sellers, as all joint holders must sign), although in the following cases, another party may sign the stock transfer form:
The legal personal representatives should represent the estate of a deceased shareholder. The attorney may sign on behalf of the seller if the Power of Attorney has been registered with the business.
A group of executives must sign on behalf of the company (for example, NewCo Limited) and declare their respective capacities. This is required of any corporate shareholder registered in England, Wales, or Northern Ireland.
• Two directors
• One director and the company secretary
• One director and a witness must also state their name and address
• Two authorised signatories
If a company seal is applied, various combinations will be needed. The date that the transferor(s) or any agent handling the transfer on their behalf signed the stock transfer form should also be entered.
7. Name(s) and Mailing Address of the recipient(s) of the shares
Input the name and contact information of the person(s) whose shares are now to be registered. This should contain each joint shareholder's name in the case of proposed joint shareholdings. To which correspondence pertaining to the shares will be delivered, only the address of the first-named shareholder should be entered.
Frequently, the intention is to register the shares under the name of a corporation or other organisation as opposed to a specific person. But transfers will usually be recorded if the recipient is a private or public limited company that was formed under a particular act of parliament, under a royal charter, or in accordance with another applicable foreign company legislation. This will imply that shares will not be transferred to the organisation itself but, in some instances, to the underlying persons or trustees associated with a charity, trust, association, or club.
If the shares are to be held under a specific account designation or reference, only then does the "Account designation" box need to be filled out.
8. The signatory's stamp, name, and address on the stock transfer form
Provide their name and address here if the replacement share certificate is to be issued to someone other than the above-mentioned first-named recipient of the shares.
9. 1st Certificate
The transfer fee is less than £1,000; complete Certificate 1 of the stock transfer paperwork. If this is the case, no stamp duty is required as long as the certificate is fully completed.
You should remove the words "I" or "We" wherever they exist.
The certificate should be signed by the person(s) who signs the transfer, their solicitor, or their approved agent, if applicable. The person signing should mention their signature capacity and the date of the certificate.
10. 2nd Certificate
In the following cases where stamp duty is not payable, Certificate 2 of the stock transfer form should be completed:
• Shares received as a gift and for which you do not pay any money or other consideration;
• When you marry or engage in a civil partnership, you receive shares from your spouse or civil partner.
• When shares are handed to you as collateral for a loan,
• Shares that were held as collateral for a loan and are now given back to you when the debt is repaid;
• When shares held in trust are transferred from one trustee to another.
• When shares are handed to you as collateral for a loan,
• Shares that were held as collateral for a loan are now given back to you when the debt is repaid.
• When a firm is wound up, a liquidator will make a transfer to settle with the shareholders.
If any of these conditions are met, and the consideration for the shares is specified as nil on the front of the stock transfer form, neither certificate is required. In that instance, the stock transfer form does not need to be submitted to HMRC, and no stamp duty is due.
Certain transactions are both exempt from stamp duty and covered by Certificate 2. As a result, you should finish this certificate:
• Shares were handed to you as part of a Will;
• Shares are transferred if you divorce or dissolve your civil partnership or
• Loan notes, perpetual interest-bearing shares, and debentures are examples of exempt stocks that are being transferred.
Again, when Certificate 2 applies, delete "I" or "We" as applicable in each place they appear, then sign and date the certificate needed.
The stock transfer form does not need to be stamped or sent to HMRC in cases where these exclusions apply, and Certificate 2 has been completed on its whole. There won't be any stamp duty to pay.
Shares Transfer can certainly be difficult to understand for someone who does not have relevant expertise and understanding of the process.
We can help you with your shares transfer, appointment of new directors, shareholders or PSCs at a very low cost and without any hassle.
If you are also in a need to report such changes to Companies House for your company then contact us today at info@iconoffices.co.uk