Measure

Stamp taxes on shares consideration

The measure

Stamp duty and stamp duty reserve tax will be charged on the market value of listed shares and securities where transferred to a connected company at an undervalue.

 

Who will be affected?

Companies that purchase listed UK shares and securities at an undervalue from connected parties.

 

When will the measure come into effect?

The new provision will apply to transfers of shares and securities from 29 October 2018.

Our view

This change will have limited impact on commercial transactions and markets as it only applies to listed securities and is intended to stop “contrived arrangements”.