8.2 Buying and selling shares
Stamp duty and stamp duty reserve tax are taxes payable on the transfer of shares from one party to another. These charges do not apply to a new issue of shares by an enterprise, or to the purchase of non-transferable, withdrawable shares in a society. However, stamp duty is payable on transferable shares of a society when these are transferred between one person and another, unless the purchaser is eligible for tax relief or exemption.
The sale of shares can be liable to capital gains tax if a profit or gain is made by the seller. But as community shares can only be withdrawn at or below the price paid for the shares, no capital gain is possible, and there is no liability to capital gains tax. Any losses on the withdrawal of share capital from a society cannot be used to offset capital gains made elsewhere (see HMRC Helpsheet 286).