| Commentary

277 Basic charge to stamp duty

| Commentary

277 Basic charge to stamp duty

The two types of company reorganisation which are likely to involve a transfer of shares are direct demergers (where there is a distribution in specie by Company A of its shares in a subsidiary company to its own shareholders) and indirect demergers (where typically there is a transfer by Company A of shares in one of its subsidiary companies to a newly formed company (Newco) in exchange for Newco issuing shares to Company A’s shareholders)1.

Stamp duty is chargeable on a transfer on sale of stock at the rate of 0.5% of

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