Stamp Taxes on Shares Manual

STSM021240 - Scope of stamp duty on shares: stamp duty: basics of a charge: transfer of Permanent Interest Bearing Shares

Permanent Interest Bearing Shares (PIBS) are building society shares which count as capital. Being mutual institutions, building societies do not and cannot have share capital in the same way as companies. Building society 바카라 사이트渟hares바카라 사이트� are effectively debt deposits carrying, amongst other things, limited voting rights to the surplus of a Society on dissolution.

Section 109(1)(e) Building Societies Act 1986 exempts from Stamp Duty (SD) 바카라 사이트渁ny other instrument whatsoever which is required or authorised to be given, issued, signed, made or produced in pursuance of this Act or of the rules of a Building Society바카라 사이트�.

Section 109(1)(b) and (c) exempt building society shares and bonds respectively. Therefore the transfers of PIBS issued by a building society are exempt from SD and do not need to be stamped.

These transfers should not be confused with the transfers of convertible notes which automatically convert into PIBS. Such transfers are liable to SD. See STSM021230.