A transfer of shares is the movement of one or more shares in a company from one person (the transferor) to another (the transferee), thereby changing the ownership of the shares and the portion of the company the shares represent.
Share transfers are often carried out in exchange for cash or other non-cash consideration, which may be subject to Stamp Duty.
Share transfers usually take two to three days to complete. This includes the drafting of the documentation and the signing by the relevant parties. The transfer is then officially completed when it is entered into the company’s own records.
Timescales will be longer if Stamp Duty needs to be paid to HMRC as part of the process (see below ‘Is stamp duty payable on share transfers?’ for when this applies).
A confirmation statement can be submitted afterwards to immediately display the transfer on the public record, although this isn’t compulsory.
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