Valuating Market Shares

[Lance]

ok thanks!

no, I'm not Dominic Chapelle, my last 10 video in my YouTube history was how to live live in a Prius! which, admittedly might be what Dominic might be considering when he gets out :P

Same questions. Same answers.
Thread closed?

[WordIsBond]

If you want to be sure everything is entirely clean and straightforward, and that you can stop worrying about this, and we can stop reading about it, do this:

1. Start a new company.
2. Invest 51 quid.
3. Have your friend invest 49 quid. (If he doesn't have the £49, give it to him personally. Do NOT give him the shares, give him the money to invest. If there is gift tax on £49 in France, pay it for him.)
4. The company issues 100 shares, 49 to him, 51 to you.
5. Go make some money so this hasn't all been a waste of your time and ours.
6. Pay yourself at least enough salary for basic state pension entitlement.
7. Pay all UK taxes (corporation, VAT, any NI) before issuing dividends.
8. Pay dividends, 51% to you, 49% to him.
9. Close your existing company (in an orderly fashion, file all accounts, etc. Pay a reputable professional to do it right so you don't get yourself in a mess). If your existing company has any assets worth owning, your new company can buy them from the existing company.

Every year, file accounts properly, and report all income, including your dividend income, on your PAYE. Issue dividend vouchers every time you pay a dividend, and make sure your friend understands that he has to pay tax on his dividends.

Assuming everything is straightforward as you've said, you are a very good friend.

[jamesbrown]

Good post. Should be end of thread, really...

[BlasterBates]

You can sell your shares for whatever price you agree to. There is no tax law preventing you doing that. Barings was famously bought for 1 pound.

Just run the transaction through your Accountant. Tax implications occur on subsequent dividend payments, and winding up of the company.