Yes, it is largely semantic.
I wasn't trying to imply that is she buys a new share it is all all right. There is still a settlement, just the share itself is not a gift.
WI think there was some consideration as to how the shares were acquired in the Arctic System case. Whether or not it would be of significance I don't have a clue.
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Reply to: Gifting shares
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Previously on "Gifting shares"
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This seems like a largely semantic distinction. It might not be new share itself that's a gift but the share of the company value and all the rights that come with that is what is being settled.
I can't remember if the Arctic case involved a new or existing share but I don't honestly think it matters.
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I dont believe it is a gift if a new share is issued directly to her.
currently the op owns 100% of the existing issued share capital.
That is different to saying he is diluted therefore it is a gift.
whether it has any relevance to the settlements legislation is a different question entirely.
if the op subscribed for the new share firdt then it would be a gift. If he reorganised capital, eg with a 1000 for one share split and gave her some then it would be a gift.
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Why wouldn't it be a gift? By issuing a new share, you're giving away half of your share by dilution rather than giving her one of your existing shares directly, but it's still a gift.
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Originally posted by northernladuk View PostYou've got an accountant haven't you?
His advice is to issue a new share direct to my spouse.
I have read so much about this and the gift status and it still isn't very clear.
If I issue direct , is it still a gift?
Some stuff I have read says it won't be a gift if I issue direct, some other info seems to indicate that it will be.
Just trying to get it right from the get go.
Thanks for all your advice.
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It's worth pointing out that it's a good idea to issue a further nine shares, rather than just a single share, is so you have flexibility in case you don't want a 50:50 share split for whatever reason, either now or in the future.
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Just remember the new shares should be ordinary shares with equal voting rights and rights to capital on winding up as yours so they aren't treated as a gift of income, in order for the spouse exemption to apply.
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Hi Marty,
I would suggest issuing a further 9 shares using the SH01 form from companies house.
And then create a share transfer form, which you should sign confirming the transfer (this is an internal document).
Hope this helps.
Regards,
Michael at BI Accountancy
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Gifting shares
New to contracting so be gentle please
I established my limited co with 1 share which is in my name.
I would like to "gift" a share to my spouse.
Should I issue myself a new share and then transfer this to my spouse?
or
Can I issue a new share directly to my wife and still be safe under "gifting to spouse" legislation?
Thanks for any assistance.
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