Accounting & Tax implications of share purchase
My clients company is considering buying shares listed on LSE. Probably wont be a whole load but perhaps a few thousand pounds worth.
I am very rusty on the tax and accounting side of this. I have a few things flowing through my mind but I am not sure on how correct they are;
1. The share purchase will show as an investment on the balance sheet?
2. The investment will be revalued on an annual basis?
3. A revaluation may arise from point 2, which will be subject to tax? Really not sure on that one!
4. Any dividends will be taxed as income and subject to Corporation Tax?
5. When he sells the shares any gain will be subject to capital gains tax?
Google has not proved fruitful on this one, so looking for some expert help.
Thanks in advance.