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The 2020 Budget has reconfirmed that the legislation introducing the following for stamp duty provisions will be in the Finance Bill 2020:

  • a minimum deemed market value consideration rule for transfers of unlisted shares of a UK incorporated entity to a “connected” company where some or all of the consideration consists of the issue of shares, and 
  • a relief for certain qualifying partition demergers, to stop a potential double charge.

We expect these provisions will be effective from Royal Assent of the Finance Act 2020 (e.g. June/July 2020) based upon the draft provisions previously published

It is possible that the Government could make the effective date earlier, albeit this might require the passing of Regulations e.g. on Thursday 19 March when the Finance Bill 2020 is expected to be published. 

A gift of unlisted shares (e.g. contribution to capital with no shares issued in consideration) to a connected company is not expected to be caught but the new stamp duty rules, again assuming that the provisions in the Finance Bill 2020 mirror the draft that was previously published. 

If you would like to discuss this further, please get in touch with Jamie Ward or your usual PwC Stamp Taxes contact.