Currently a limited company has issued 1000 shares @ £1. All these shares are owned by one director. Now he is trying to bring in another partner in to the business. The partner may invest some money in to the business or forego his salary for the next few years ( undecided yet - tax savings will play a part here).
So, if the current director wants to give up 50% ownership to the new investor , what would be the best structure?
1. Can they open up a holding company and both can have 50/50 ownership in the holding company and the holding company can have 100% shares in the existing company? In this case when the current director transfer all his shares to the holding company, what are the tax implications?
2. Is it simple to issue another 1000 shares to the new investor? Any tax implications?
3. When new shares are issued in the existing company, what value it should be issued at? Par value? or a valuation should be carried out ( partners may not be interestd what value it is offerred) - for Revenue/Tax purposes? What are the tax implications including stamp duty etc?
4. if the shares are trasferred to the holding company, will there be any stamp duty or taxes?
Thanks for your help in this matter.