In addition to introducing a targeted market value rule for listed securities transferred to connected companies from 29 October 2018, the government is also going to issue a consultation on 7 November 2018 on applying stamp duty and stamp duty reserve tax to the market value of UK unlisted shares and securities where they are transferred at an undervalue or gifted between connected parties.
Companies that acquire shares or securities from connected parties at an undervalue.
The consultation will be published on 7 November 2018. The proposed introduction date of the legislation is currently unknown.
Unlike the measures announced on 29 October 2018 for listed securities, adopting a more general market value rule for UK shares and securities will affect many more transactions and may require more valuations of unlisted shares to be undertaken. Hopefully current reliefs such as that for intra-group transfers will remain to reduce the compliance and tax burden of this new charge.