A client has just called to say he is giving 10% of the company to a new employee as an incentive to join. He will transfer the 10 shares for nil value.
The company does have a value (potentially several hundred £'000 in the right hands) so there is obvioulsy tax implications. I advised him it might need to be done through an incentive scheme such as EMI but he says no, "can't be bothered with all that stuff"
My knowledge in this area is limited so I do not want to advise him everything without looking into further or seeking advice elsewhere but my initial research has lead to two questions;
1) Should there be an issue of new shares instead
2) What are the tax implications for the employee, company and director selling the shares.
Any initial advice or pointers would be gratefully received