STSM021080 - Scope of stamp duty on shares: stamp duty: basics of a charge: debt: debt released - examples
Example 1
A owes B 拢10,000. A owns some shares which are worth 拢10,000. B agrees to accept those shares in settlement of the debt. The chargeable consideration is the amount of the debt released, 拢10,000.
Example 2
A owes B 拢10,000. A owns some shares which are worth 拢11,000. B agrees to accept those shares in settlement of the debt and to give A 拢1,000. The chargeable consideration is the amount of the debt released plus the cash payment, 拢11,000.
Example 3
A owes B 拢10,000. A owns some shares which are worth 拢11,000. B agrees to accept those shares in settlement of the debt. The chargeable consideration is 拢10,000 i.e. the amount of the debt discharged.
Example 4
A owes B 拢10,000. A owns some shares which are worth 拢8,000. B agrees to accept those shares plus a cash payment of 拢2,000 to clear the debt. The chargeable consideration is 拢8,000.
Example 5
A owes B 拢10,000. A owns some shares worth 拢8,000. B agrees to accept those shares in settlement of the debt and writes off the balance. The chargeable consideration is limited to the market value of the shares, 拢8,000, by virtue of FA80/S102.