BBC News - George Osborne: Drop rights for a stake in firm
Start up contracting limited company. Invest £2000 of cash in the company account. Make oneself employee no. 1. Employee no. 1 exchanges rights for 100% of the shares in the company, valued at £2000. Employee no. 1 sees the value of his £2000 of shares appreciate as the day rate flows into the company. After a few years of taking a small wage, employee cashes in his shares at 0% CGT.
Am I missing something?
Start up contracting limited company. Invest £2000 of cash in the company account. Make oneself employee no. 1. Employee no. 1 exchanges rights for 100% of the shares in the company, valued at £2000. Employee no. 1 sees the value of his £2000 of shares appreciate as the day rate flows into the company. After a few years of taking a small wage, employee cashes in his shares at 0% CGT.
Am I missing something?
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