Specialist adviser for company purchase of shares (POS)?

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zcapr17 replied

11 May 2017, 10:42
Originally posted by TheFaQQer View Post

For a company like this, isn't it just pretty much a case of getting a trial balance to show what the company is worth in terms of assets and liabilities and then split it along the lines of the share split? You might deduct say 10% as an indicator that you appreciate the difficulty of selling private shares if they wanted to sell up to anyone else, or conversely they may want to charge you a premium above the split because of the good will involved in the business.

Yeah, I'm starting with the book value (divided by the number of shares), however I believe it should be possible to add a small premium to account for intangibles (my parents have built up the company reputation and business relationships with various clients). The tricky bit is knowing what's going to be acceptable to HMRC.
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TheFaQQer replied

11 May 2017, 08:56
For a company like this, isn't it just pretty much a case of getting a trial balance to show what the company is worth in terms of assets and liabilities and then split it along the lines of the share split? You might deduct say 10% as an indicator that you appreciate the difficulty of selling private shares if they wanted to sell up to anyone else, or conversely they may want to charge you a premium above the split because of the good will involved in the business.

IANAA but that's how I would approach it.
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zcapr17 started a topic Specialist adviser for company purchase of shares (POS)?

10 May 2017, 18:03
Specialist adviser for company purchase of shares (POS)?

Hi,

I currently contract through my parent's ltd co. They are director and secretary and have been contracting for ~15 years, myself around 10 years, all through the same company. The current shareholdings roughly correspond to the income we've each brought in.

Both my parents are retiring, and after discussing the various options with my accountant, it looks like the optimal strategy moving forward is for the company to buy back the majority of shares owned by my parents. This enables a proportion of retained profit to be extracted as capital, for which they will be able to obtain entrepreneur's relief. I'll keep my shares and take PAYE+dividends moving forward.

The tricky bit is making sure we meet all the conditions of CTA 2010 s1033, valuing the company shares, and making the pre-application to HMRC for capital treatment, for which my accountant recommends seeking specialist advice.

So, can anyone recommend an specialist adviser in this area?

Thanks.

z.
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