How much duty on share transfer in Queensland?

[wylie]

I have googled to find out how much transfer duty is payable to OSR on transfer of shares from one party to another. It keeps sending me to the OSR site, but I cannot see where I should be looking for shares, only property.

Is the duty the same as for property? Property is split into PPOR and investment, so where do shares fit in... investment? I think there must be another calculator for shares, but I keep getting tipped back to the property calculator.

If there is a calculator for shares I can use, I'd love a link.

 

[Terry_w]

I beleive there might not be any duty on the transfer of shares in QLD - unless they are shares in a trustee perhaps.

 

[Paul@PFI]

Does the company own property ?

The indirect duties rule bites again. Even a trustee interest.

 

[wylie]

Does the company own property ?

The indirect duties rule bites again. Even a trustee interest.

The shares are currently owned by a Pty Ltd company, which is a family trust that my brother and I both manage. I'm not sure what we are called (trustees? appointees? appointors, shareholders??).

My apologies that I have no clue what we are called but this stuff is way over my head. I just say "where do I sign".

The company holds property.

My brother is quite sure we will pay duty if we put the shares into his name.

 

[Terry_w]

Yes there will be duty if the property owns land and is a trustee. It would be normal rates.

 

[coastymike]

Wylie

Why not give Paul a call. He used to work with Chris Batten at MGS and they dealt a lot with stamp duty issues on share transfers. A phone call to him might lead you in the right direction.

 

[Paul@PFI]

Its dutiable to the extent of the transfer of land. So if the shares are sold by the company (tfr to buyer) then thats not dutiable.

If the trust is modified the land is dutiable also.
If the company is modified affecting control of the trust the land is also dutiable.

Get advice before you act if it affects the trust !! If its just the shares owned by the trust then no issues.

The old QLD indirect duties rule - It sucks. Its so easy to affect the trust and create a liability. "Normal rates" dont apply...Sort of. Actually they do. However the dutiable change of ownership is required to be looked at before and after. It can be 50% for example if trust was controlled by Dave then after company changes Dave and Mabel both control the trust.

 

[Terry_w]

QLD Duties Act has many traps for young players. Beneficiaries can even be liable for duty in some instances. This has implications to different parites entering a unit trust arrangement for example.