Changing Share issue

[ASB]

surely you can transfer the shares to anyone you want without financial gain.

Not really no.

It would still count as a disposal for CGT reasons. So if they were sold back for say a tenner to a connected party then there is a disposal for the valuation rather than the consideration. What the valuation is in these circumstances is questionable, but a percentage of the retained funds is probably a decent starting point. Thus if the company had a large bank account it could potentially give rise to a CGT charge on the seller.

[oraclesmith]

The valuation would be something akin to what they would fetch in open market for a slice of your company. Obviously it's very difficult to do with a tiny company which depends on one person's skills, which is why I gave up doing it and resorted to the settlement route to pay divi's.

[PAG]

Yeah 40 to my partner, however I dont want to pay dividends to her, just me, she is ok with that, she is alsio the company sec.

get her to sign form 88(2). and 288(b).

[THEPUMA]

You should also both sign a capital gains tax holdover relief claim form in order to avoid the capital gains tax problem to which ASB refers. Email me if you want me to send you a blank form.

[ASB]

You should also both sign a capital gains tax holdover relief claim form in order to avoid the capital gains tax problem to which ASB refers. Email me if you want me to send you a blank form.

Isn't that only appropriate for spousal transfers?

"partner" was mentioned so that might stymie the relief.

[THEPUMA]

No it's the other way around. You wouldn't have to sign such a form for a spouse as they are automatically exempt from CGT. You can apply for holdover relief in various scenarios, one of which is where the asset in question is a business asset and the proceeds are less than market value.

[rootsnall]

The advice I remember being given is to just shut your Co down and start a new one with whatever share setup you now require.

[ASB]

No it's the other way around. You wouldn't have to sign such a form for a spouse as they are automatically exempt from CGT. You can apply for holdover relief in various scenarios, one of which is where the asset in question is a business asset and the proceeds are less than market value.

I see, could be useful to remember if I ever become unmarried