A client company, a private limited company, valued at £1million pounds has a share issue of 10,000 shares.
Only 100 have been allocated, 50 each to the directors, an estranged husband and wife.
Each parent now wishes to give £3000 worth of shares to their daughter. As I see it they need to diminish the value of a share. How do I do a bonus issue?
Suzanne
Replies (1)
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a number of issues
presumably this is be an IHT annual free gift
you may still have 'settlement' problems
£3,000 appears to eqaute to .3% so you appear to have 2 options
1. subdivide the shares or
2. have a bonus issue
if you issued 99 shares for everyone in issue you would then end up with a ISC of £10,000.
technically then the gift of 30 shares is simple they can give 15 each
you will have to decide whether you create a new class of shares that rank pari passu with the others but do not qualify for a dividend
its all very messy eh!