Share Transfer and Issuance Services

At Affotax, we provide comprehensive share transfer and share issuance services designed to simplify complex processes for private limited companies in the UK. Whether you're raising capital, reorganising ownership, or transferring shares between shareholders, we offer clear guidance to ensure compliance, transparency, and efficiency throughout.

Our UK Share Transfer and Issuance Process

Selling shares in a UK company can be a strategic move for several reasons, including:

• Raising Capital: Issuing new shares allows you to bring in new investors, providing your business with the funding it needs for expansion or new projects.
• Ownership Changes: Whether due to restructuring, succession planning, or selling the business, transferring or selling shares changes the ownership structure of your UK company.
• Employee Incentives: Offering shares as part of a reward system can motivate employees, giving them a stake in the UK company’s future success.

Whatever the reason, our dedicated team at Affotax helps guide you through the process of share issuance and selling shares, ensuring everything is handled smoothly and professionally.

Our Process for Share Transfers and Issuance

At Affotax, we guide you through the entire process of share transfer and share issuance with a clear and simple approach:

1. Initial Consultation: We start by understanding your objectives and business needs, whether it’s issuing shares for investment or transferring shares for ownership changes.
2. Legal Documentation: We handle all legal paperwork, including stock transfer forms, Form SH01, SH01 form, share certificates, and shareholder register updates, ensuring compliance with Companies House and UK company law.
3. Due Diligence: If you're purchasing or selling shares, we assist with necessary due diligence, ensuring the value and terms of the transaction are clear and fair.
4. Tax and Compliance Advice: We provide expert guidance on the tax implications of share transfers and issuance of share capital, ensuring the transaction is structured to minimise liabilities and stay compliant with relevant laws.
5. Reporting to Companies House: We take care of all necessary filings with Companies House, including submitting your Form SH01 for share issuance, ensuring accurate and timely updates to your company’s shareholder records.



Share Valuation and Pricing

The valuation of shares in a private limited company depends on multiple factors, including the company’s financial health, growth prospects, and market conditions. In many cases, the valuation will be negotiated between the buyer and seller, with input from accountants or other experts. At Affotax, we assist in determining the fair market value for the shares involved in the transaction, ensuring transparency and fairness for all parties.

Key Considerations in Share Transfers and Issuance

Several key factors can influence share transfers and issuance, which should be taken into account:

• Pre-emption Rights: These rights give existing shareholders the opportunity to buy shares before they are sold to external parties. We help you navigate these rights to ensure a smooth process, especially when shares are being sold to new investors.
• Tax Implications: Share transactions can have tax consequences, including Capital Gains Tax (CGT) or Stamp Duty. We work closely with your tax advisors to ensure you understand and mitigate any tax liabilities associated with the share sale or issuance of share capital.
• Company Articles & Shareholder Agreements: Many companies have specific provisions in their Articles of Association or shareholder agreements that govern how shares can be sold or transferred. We ensure that these documents are properly followed and that the transaction is legally sound.

Types of Share Transactions We Handle

1. Selling Shares: If you're looking to sell shares in your company—whether to raise capital, exit the business, or restructure—we manage the process from valuation through to the legal transfer of ownership. If you’re wondering, can I sell my shares through my bank? The answer is generally no, but we can help facilitate the sale through the appropriate legal channels.
2. Issuing New Shares: Issuing new shares can help your business grow by attracting new investors or providing equity-based compensation for employees. We handle everything from the issuance to updating shareholder records.
3. Employee Share Schemes: We help you set up employee share schemes, offering employees a stake in the company, which can enhance loyalty and performance.
4. Buybacks: For companies looking to repurchase their shares, we guide you through the regulatory requirements and ensure the buyback process complies with UK law.

Understanding the Costs: Tax and Fees

• Stamp Duty: A 0.5% Stamp Duty applies to the sale of shares over £1,000, payable by the buyer. This applies to share transfers in most cases, though there are exceptions, such as shares purchased by employees through certain schemes.
• Capital Gains Tax (CGT): If you sell shares and make a profit, you may be subject to Capital Gains Tax on the gains over your annual allowance. We offer advice on minimising your tax liability and maximising your investment returns.
• Share Valuation Fees: Depending on the complexity of the share transfer or issuance, there may be associated fees for valuation services, legal documentation, and compliance filings. We provide transparent pricing, ensuring no hidden costs.

Contact Affotax for Your Share Transfer and Issuance Needs

At Affotax, we simplify the process of transferring or issuing shares in a private limited company. Our experienced team is here to guide you through every step, from initial consultation to final compliance filing. Whether you're raising capital, reorganising ownership, or rewarding employees, we provide clear, expert advice to ensure the process is efficient and compliant.

Contact us today to discuss how we can help you with your share transfer or issuance of share capital needs.