It is usually possible to transfer shares to someone below the age of eighteen (or sixteen if the company is registered in Scotland) but you should note that this can lead to complications. For example, dividends will be paid only in the name of the shareholder and if you subsequently wish to transfer shares held in the name of a minor, you may need a Court Order.

Alternatively, you can continue to hold shares in your name, on behalf of the minor, segregating them from any of your other shares by adding a 'designation'. You can do this by completing a Re-designation form.

A designation is a short identifier, usually a few letters long, such as the child's initials for example, that marks the shares on our records as a separate account. When choosing a designation, you must avoid using names and recognisable phrases.

To transfer your shares to another person, e.g. child's parent, who will hold the shares for the child, please complete a Stock Transfer Form. You may add an account designation directly after the name of the new holder on the form as "a/c XYZ" for example. This separates it from the parents own shares.

All transfers to a minor should include the birth certificate with the appropriate Form and share certificates (where applicable).

When shares held as above are transferred to a child who has reached their majority, please ensure that you consider Stamp Duty. Details are on the reverse of the Stock Transfer Form. Failing to do this may have Tax implications for both the Nominee/Trustee who held the shares and the former child.