Changes to Stamp Duty following the 2008 Budget

Following new legislation announced in the Budget, changes have been made to the filing requirements for certain forms related to repurchase by a company of its own shares.

The ad valorem (in proportion to value) stamp duty relating to a repurchase of shares will now only apply where the consideration for those shares is more than £1000.

For instruments executed on or after 13th March 2008, if the consideration is £1000 or less, the appropriate forms 169 & 169(1B) do not need to be stamped by Her Majesty’s Revenue & Customs (HMRC) before they are sent to Companies House. However, if this is the case, the forms need to be certified that the transaction does not form part of a larger transaction, the consideration for which is more than £1000.

The £5 fixed stamp duty applied to cancellation by a plc of shares from treasury has been abolished, so that a form 169A(2) signed on or after 13 March 2008 does not now need to be sent to HMRC for stamping before being sent to Companies House.

Amended forms 169, 169(1)B, which include the certification wording, and 169A(2), which has had references to stamp duty removed, are now available on the website.

Further information about the changes to stamp duty can be found on the HMRC site: http://www.hmrc.gov.uk/so/summary-budget-measures.htm