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Hypothetical Question One - Handing over companies

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    Hypothetical Question One - Handing over companies

    Just a shower thought really. Let`s say I`m suddently retired and I find myself with a company that owns decent assets (say a few houses or something) what`s the deal with handing that down to my kid(s)?

    Just curious as to how that all works, really.

    #2
    Sell them the shares at a reasonable price? Make them directors and resign? Ask your accountant (couldn't help it)? Don't spend as long in the shower?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      Write a will. Get life insurance. Start smoking and go base jumping. Sorted.
      See You Next Tuesday

      Comment


        #4
        Originally posted by northernladuk View Post
        Make them directors and resign?
        How does that help? You do know there's a difference between being a director and being a shareholder...
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          #5
          Originally posted by TheFaQQer View Post
          How does that help? You do know there's a difference between being a director and being a shareholder...
          He might know the difference between self-employed and running a LtdCo, and he might know the difference between being an employee and an officeholder.

          But if he doesn't know any of those things, he could always...

          ...ask his accountant.

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            #6
            Potentially a few ways of doing this.

            Gifting them the shares although this would be subject to CGT (holdover relief should be available).

            Other option is to leave the shares in your will, should be free of IHT if BPR is applied. They would then get the shares at market value (from the date of your death) for CGT purposes.

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              #7
              Originally posted by TheFaQQer View Post
              How does that help? You do know there's a difference between being a director and being a shareholder...
              The quality of NLUK trolling has gone south since Brexit.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

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                #8
                https://www.taxinsider.co.uk/693-How...ty_Assets.html

                The article is a few years old but you get the idea.

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                  #9
                  Remember there is a big difference in tax treatment between trading and non-trading companies. Trading companies you can leave to your kids with virtually no tax to pay. Non-trading companies tend to get treated like any other asset (IHT, CGT etc). Property = non-trading.
                  ...my quagmire of greed....my cesspit of laziness and unfairness....all I am doing is sticking two fingers up at nurses, doctors and other hard working employed professionals...

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                    #10
                    Buy a farm or a forest. Both IHT free?
                    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
                    Officially CUK certified - Thick as f**k.

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