Quick summary
A share of freehold sale bundles two separate transactions: the lease, which is Stamp Duty Land Tax territory handled by conveyancing solicitors, and the share transfer itself, which is ordinary Stamp Duty on the shares, generally due once the stated consideration exceeds £1,000.
Selling a flat in a share of freehold building bundles two transactions together. The lease sits in Stamp Duty Land Tax territory, handled by the solicitors. The share transfer in the freehold company itself runs on ordinary Stamp Duty, a different tax entirely, and one that quietly falls to the board to flag as part of the wider share transfer process.
The £1,000 threshold
Stamp duty on a share transfer generally applies once the consideration for the shares exceeds £1,000. Below that, the transfer can usually be certified exempt on the form itself. Above it, duty is due on the value of the shares, worked out separately from the flat's sale price.
Why this catches people out
The share in a share of freehold arrangement usually carries a nominal value, well below the flat it comes attached to. Sale contracts don't always spell out what was paid for the share specifically, leaving the board, or the solicitors, to work out a reasonable figure before anyone can say whether £1,000 has been crossed.
What the board should actually check
- Is there a stated consideration for the shares, separate from the flat's sale price? Sort that before completing the transfer.
- Does it exceed £1,000? Below that, certify the transfer exempt.
- If it does, the buyer generally accounts for the stamp duty. Leave the transfer marked complete until that's resolved.
A signal, not a verdict
This tells you when the question arises, not how to answer it in every case. Stamp duty is real tax with real obligations, and anywhere the £1,000 line is genuinely in doubt deserves a solicitor or accountant rather than a guess over the kitchen table.
Stamp duty is only one of the questions that arrives with a sale. The rest usually come in a single email from the buyer's side: see what the buyer's solicitor wants.
Frequently asked questions
Does the company pay the stamp duty?
Generally the buyer's responsibility, not the company's.
What if the share has no stated value at all?
Common, when contracts only price the flat as a whole. The board or the solicitors need to agree a reasonable figure for the share before the transfer can be completed and certified. FreeholdMate's share transfer workflow flags this gap at the point of recording the transfer, rather than leaving it to surface later.
Is this the same as Stamp Duty Land Tax?
No. Stamp Duty Land Tax applies to the property side and runs through conveyancing. Stamp duty on a share transfer covers the shares themselves, with its own £1,000 threshold and its own process.