share issue

share issue

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elderly gentleman running a company renting our flats and office space. currently has majority shareholding and wishing to reduce this in view of IHT.

there is no way around CGT if he gifts or sells them to his sons but how about issuing new shares so that his majority is now diluted?

would that still be assimilated to a sale?

many thanks in advance

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By campbed
12th Dec 2011 13:23

see case of Kirk in attachment

http://www.taxinsider.co.uk/179-Giving_it_All_Away_PETs_GWROBs_and_the_POAT.html 

 

See case of Kirk in attachment  for simple overview of the pitfalls 

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By SE_Confused
12th Dec 2011 14:16

thank you

exactly what i was looking for

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