Consideration - stock transfer form (J30)

Trusts Discussion
1

Good evening Everyone,

I am writing to you as a doubt has been raised by a lawyer.

In case of a backward transfer of UK corporate shares (LTD) from a nominee/legal owner/trustee to a beneficial owner, how much consideration should be reported in the “Consideration” section of the stock transfer form (J30)?

In my experience, since this is a trust agreement, it is best practice to report £1 of consideration.
The lawyer, however, argues that they can report a £Nil consideration.

I kindly ask the experts for advice on this matter.
Thank you for your support
Sarah

2

The Schedule to the Stamp Duty (Exempt Instruments) Regulations 1987(The Stamp Duty (Exempt Instruments) Regulations 1987 (legislation.gov.uk)) identifies those transfers where no consideration is required.

The 3 types of transferee mentioned are not within the same category, so it will be necessary to establish which category applies and to include reference to that in the exemption certificate which would normally form part of the transfer document.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

3

Dear Mr Saunders,

Thank you very much for your valuable answer.

Kind regards
Sarah