top of page
Review Your SQE 1 Practice Records

Examination Timing: 00H00M02S

Edward Thomson, a retired banker, holds a 10% shareholding in Forton Tech Ltd, a private limited company based in Manchester. He decides to sell his shares for £10,000 to Clara Vincent, an aspiring entrepreneur, to diversify his investment portfolio. Edward has executed the stock transfer form. As Clara's legal representative, you are advising her on the next necessary steps to finalise the transfer.


What should be done next?

< Previous

You have chosen the incorrect answer.

Next >

The correct procedure following the sale of shares in a private limited company involves several critical steps, primarily focusing on tax obligations and the official transfer of shares. When a shareholder like Edward sells his shares, the stock transfer form, which records the transaction details, must be sent to HM Revenue and Customs (HMRC) along with the applicable stamp duty payment, if the transaction value exceeds £1,000. This payment must be completed within 30 days of executing the transfer to avoid penalties.

After HMRC stamps the form, indicating that any due tax has been paid, the form (now stamped) should be provided to the company—Forton Tech Ltd, in this scenario. The company is then responsible for registering the transfer and issuing a new share certificate to Clara, the new shareholder. It is essential for the administrative process in maintaining accurate and updated company records, though the transfer itself does not need to be filed with Companies House. The company must also update its register of members to reflect this change, but there is no need to immediately update the PSC Register or notify Companies House, as these details are typically confirmed in the annual confirmation statement.

Collect Question

userContent

Study CELE SQE.png
CELE SQE PASS wishes from Lucky Lion_

Ai Content

bottom of page