Stock Transfers Made Simple

A guide to managing stock transfers made on and off Vestd

Whether you’re gifting 🎁 or selling shares 💸, keeping your company’s records accurate and up-to-date with HMRC is essential. On Vestd, you can manage both new stock transfers and previous transfers completed off-platform. 

This guide will walk you through the process, so you can get it done quickly and confidently. Plus, we’ve included a handy tutorial video 🎥 to show you exactly how to complete stock transfers on the platform!  

Let’s dive in and make your stock transfer hassle-free.  

• Before you start
  
• Getting started
  
• Enter the details of your stock transfer
  
• Governance checks - do need resolutions to authorise a stock transfer?
  
• Final Steps
  

Before you start💡

Here’s what you’ll need to know:

• Stamp Duty: If the total value of the transfer is over £1,000, stamp duty is payable at 0.5% of the value, rounded up to the nearest £5. The buyer (the person receiving the shares) is responsible for paying this to HMRC and uploading the payment receipt (proof of stamp duty payment).

Getting started🏁

1. Log in to your Vestd account and head to Share capital > Stock transfers in the side navigation.
2. Choose Create a new transfer or Record a previous off-platform transfer.

Enter the details of your stock transfer⌨️ 

Here’s what we’ll need:

• Share class: Select the share class you’re transferring shares from.
• Shareholder (from): Choose who is transferring the shares. (If their name isn’t selectable, their residential or company address might be missing. You can add it by going to People & Communication > Shareholders, selecting their name, and clicking Add address.)
• Recipient (to): Select who is receiving the shares. (If they’re not on the dropdown list, click Add a shareholder and provide their address.)
• Number of shares: Specify the quantity being transferred.
• Total price: Enter the total value of the shares (cash consideration).
• Stamp duty applicable: If the total price exceeds £1,000, you’ll need to upload proof of stamp duty payment later in the process.

Governance checks - do need resolutions to authorise a stock transfer?📜

Depending on your company’s governance requirements, you might need director and shareholder resolutions to approve the stock transfer. Don’t worry—Vestd makes it easy!

When prompted, you can choose one of the following options:

• Generate new resolutions: Create fresh resolutions directly on the platform.
• Upload signed resolutions: If you already have the necessary resolutions signed, simply upload them.
• Select from existing company documents: Use resolutions you’ve previously uploaded to Vestd.

Follow the prompts, and we’ll guide you through the process step by step.

What’s next?

Document Management

Vestd will prompt you to:

• Generate or upload the share purchase agreement and stock transfer form.
• Upload proof of stamp duty payment (if required).

Final Steps🚀

After you’ve entered all the details and uploaded any necessary documents:

1. Review & Confirm:
   
   • Check everything on the stock transfer summary.
   • Make any changes if needed.
2. Start the Stock Transfer:
   
   • For new transfers: Documents are sent to the relevant parties via DocuSign for digital signatures. You’ll be notified by email when they’re signed.
   • For previous transfers: Once all documents are uploaded, click Start the stock transfer to record it on Vestd.
3. Upload Stamp Duty Receipt:
   
   • If stamp duty applies, you’ll be prompted to upload the receipt once the documents are signed.

Our team, content and app can help you make informed decisions. However, any guidance and support should not be considered as 'legal, tax or financial advice.'