Form 42 - market share price?

[AtW]

I am about to fill in Form 42 for New companies (www.hmrc.gov.uk/sharesche...anies.pdf) which is much simplified version of Form 42, and I am a bit confused as to what market price to put on shares. How the feck one can determine market price in case of a small company?

Particular concern is that on tax charged column. Suppose if I put same market price as the face value, then I won't have any "gains", ie shares won't be "free", so am I correct thinking I don't need to pay any stinking tax on these?

Finally, since I "bought" shares, should I actually transfer the amounts stated to business account to show that acquisition actually took place? :rolleyes

[OwlHoot]

Can't you just assign a nominal value of 1p per share?

OH in "only guessing mind" mode

[AtW]

money

don't think I can now since I specified 1000 shares worth £1 each during formation. :rolleyes

[Lucifer Box]

Re: money

Yes, but how many did you issue? I specified 1,000 shares @ £1 each for my company also, but I've only issued 2.

[planetit]

Re: money

I’m not sure about this, but you didn’t necessarily issue all those 1000 shares. So you personally could have bought 10 of them (these become “called up” shares in the accounts). The other 990 remain with the company.

I think you (personally) have to pay the company for the shares you bought.

P.S. did I mention that I’m not sure of this.

[AtW]

issued shares

Damn good question -- I am checking now how many I issued to myself, I think all

[AtW]

subscribed?

During company formation I personally subscribed to all 1000 shares, I take it this means they were "issued" to me?

[AtW]

answer

Well had a chat with official people about that and they said basically put face value as market value -- nobody can easily argue that its not the case, consequently there are no tax issues since no "free" shares were given.

The only issue is having actualy paid for shares to the company -- about 9 months after purchase took place. Can any sanctions be applied to me for that?

[DimPrawn]

Re: answer

If you issued all 1000 shares to yourself then the market value of the company is £1,000 (assuming £1 per share) and legally you must put £1,000 of you own money into the company, as you bought them.

I gues you could sell 900 back to the company later and get some money back.

Silly boy. :rolleyes

[AtW]

shares

Oh well, I needed to create company in a rush as I received short term but lucrative contract that I wanted to put through company. I did not want to have £100 shares as it looked to me like el cheapo company, so I gone for £1000 fully expecting to pay them, but I did not ... :rolleyes

Now, do I need to just transfer £1000 from personal to business account to close the matter? Do I need any special paperwork, perhaps letter from myself to the company stateing I am buying shares for that amount etc?