Buying and selling shares
- How can I transfer shares to someone else?
- What is stamp duty?
- How do I buy and sell shares on the market?
- Do I need to produce my share certificate when I sell my shares?
- Will I be liable for Capital Gains Tax if I sell my shares?
- How can I donate shares to charity?
- What is CREST?
You do not always need to use a bank or stockbroker to buy and sell shares. If the buyer and seller agree between themselves, they can transfer shares ‘off market’ by using a stock transfer form. This must be sent to the Registrar, together with the share certificates. This method is frequently used in cases where no stamp duty is payable. Such as gifts of shares (perhaps to relatives or charities) or on the distribution of an estate.
Stamp duty is tax that is payable whenever shares are traded. The buyer of the shares must pay the stamp duty before the shares can be registered in their name. Stamp duty is currently set at 0.5 per cent of the value of the shares traded, rounded to the nearest £5.00. If you use a broker to buy shares, the stamp duty will usually be added to the price automatically.
Our Registrar offers both internet and telephone dealing services.
You can deal over the telephone or the internet from 8.00am to 4.30pm Monday to Friday excluding Bank holidays.
Real-time trading is available on the internet during market hours and there is no need to open a trading account in order to deal. The fee for the service is one per cent of the value of each sale or purchase of shares subject to a minimum fee of £30. The maximum value of shares you can trade using the internet is £25,000 for purchases and £50,000 for sales. Please note that the internet dealing service is only available to existing shareholders. https://www-uk.computershare.com/investor/sharedealing.asp.
The fee for the Telephone Share Dealing Service is one per cent of the value of the transaction subject plus a fee of £35. If you would like to use this service please call +44 (0)870 703 0084. Stamp duty of 0.5 per cent is also payable on all purchases.
Investors can also use a stockbroker, bank or building society to buy or sell shares on the open market. The commissions charged for buying and selling shares vary between the different organisations. If you do not know a stockbroker you can contact The Association of Private Client Investment Managers and Stockbrokers (APCIMS) on +44 (0)20 7247 7080. Or you can obtain details of stockbrokers all over the UK who deal with private investors on their website at www.apcims.co.uk
Before selling Rolls-Royce Holdings plc shares you must ensure that you have a valid “Rolls-Royce Holdings plc” share certificate in your possession. If you have a share certificate in the name of “Rolls-Royce plc” then this is no longer valid. You should arrange for a replacement certificate before proceeding.
If you can't supply a valid share certificate after a sale has taken place on your behalf, the broker may have to carry out a ‘share buy-back’. This means that the broker will purchase shares on the market in order to fulfil the sale that they have carried out on your behalf. If the broker has to do this then they will charge you for any costs that they incur.
A charge to Capital Gains Tax (‘CGT’) may arise when you dispose of an asset which is worth more than when you acquired it. You are liable to pay tax on the total chargeable gains arising on disposals you make in any one tax year. These are gains that are in excess of the annual exempt allowance. To check the current annual exempt allowance and to consult the guidance available from HM Revenue and Customs, please visit their website http://www.hmrc.gov.uk/cgt/index.htm. Neither the Company nor the Registrar can advise individuals on CGT and if you require further assistance please consult an appropriate financial advisor. Back to top
If you only hold a small number of shares you may find that dealing costs make it uneconomic for you to sell them. In this situation you may wish to consider donating them to charity through ShareGift. ShareGift is a registered charity that specialises in accepting small numbers of shares. ShareGift collect the shares until they have enough to sell and then make charitable donations from the funds created to many different charities.
For further information on ShareGift, including details of the charities that they have already helped, you can go to their website: www.sharegift.org. Alternatively you can contact them at:
The Orr Mackintosh Foundation,
17 Carlton House Terrace,
London SW1Y 5AH
Telephone: +44 (0)20 7930 3737
CREST is an electronic system for settling the sale and purchase of shares. Membership is voluntary and is typically used by institutions, and by individual investors who have a large share portfolio or who buy and sell shares frequently. CREST enables shareholders to hold and transfer their shareholdings in electronic form rather than using paper. For further information on CREST please write to:
Euroclear UK & Ireland
33 Cannon Street
Tel: +44 (0)20 7849 0000