Hypothetical Question One - Handing over companies

[piebaps]

[QUOTE=northernladuk;2400557]The quality of NLUK trolling has gone south since Brexit.[/QUOTE

I dunno - it made me smile and I'm new here

[SeanT]

Give them whatever you want, just don't die for ten years.

[Fred Bloggs]

Buy a farm or a forest. Both IHT free?

[Lockhouse]

Remember there is a big difference in tax treatment between trading and non-trading companies. Trading companies you can leave to your kids with virtually no tax to pay. Non-trading companies tend to get treated like any other asset (IHT, CGT etc). Property = non-trading.

[ChimpMaster]

https://www.taxinsider.co.uk/693-How...ty_Assets.html

The article is a few years old but you get the idea.

[northernladuk]

How does that help? You do know there's a difference between being a director and being a shareholder...

The quality of NLUK trolling has gone south since Brexit.

[Michael at BI Accountancy]

Potentially a few ways of doing this.

Gifting them the shares although this would be subject to CGT (holdover relief should be available).

Other option is to leave the shares in your will, should be free of IHT if BPR is applied. They would then get the shares at market value (from the date of your death) for CGT purposes.

[WordIsBond]

How does that help? You do know there's a difference between being a director and being a shareholder...

He might know the difference between self-employed and running a LtdCo, and he might know the difference between being an employee and an officeholder.

But if he doesn't know any of those things, he could always...

...ask his accountant.

[TheFaQQer]

Make them directors and resign?

How does that help? You do know there's a difference between being a director and being a shareholder...

[Lance]

Write a will. Get life insurance. Start smoking and go base jumping. Sorted.

[northernladuk]

Sell them the shares at a reasonable price? Make them directors and resign? Ask your accountant (couldn't help it)? Don't spend as long in the shower?

[vwdan]

Just a shower thought really. Let`s say I`m suddently retired and I find myself with a company that owns decent assets (say a few houses or something) what`s the deal with handing that down to my kid(s)?

Just curious as to how that all works, really.