Transfers of preference shares are also liable to stamp duty. Stamp duty is computed on the value of the preference share or consideration, whichever is higher.
The value of the preference share will depend on the rights attached to the preference share. This is applicable for stamp duty purposes only.
Example
If the holder of the preference share is entitled to capital at the time of liquidation of the company, the value of the preference share is taken to be equal to the capital contributed.