In the majority of cases, when purchasing shares, stamp duty is payable on the purchase price at a rate of 0.5%. When we have acted for buyers, we pay this on their behalf and liaise with HMRC to ensure it has been received by them so no penalty is issued to them.
However, since the start of the pandemic we have seen changes in the way HMRC are accepting stamp duty on shares. Payment is now to be sent via electronic transfer and an email detailing the transaction is sufficient.
HMRC then provide a confirmation of payment via email which is to be relied upon by buyers instead of the usual stamping of the hard copy stock transfer forms. However, the timescale in receiving confirmation has increased to at least 7 weeks. Although this isn’t ideal, it may be an indication that the economy is recovering with a high number of transactions taking place.
Hopefully as lockdown begins to ease, we’ll see a decrease in the processing time.
If you are a buyer of shares and would like assistance in dealing with the transaction, please call us today on 01270 625478 or by clicking here to arrange to speak to one of our expert Corporate & Commercial Solicitors.