Selling part of the Company
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.
- *Urgent pls advise * filing dormant accounts to Companies House 244 14
- Website development costs - tax and accounting treatment 158 2
- MAAT signing off ACCA PER? 220 2
- Amazon - digital book sales 155 1
- Limited Company - Personal Bank Account 325 11
- tax insider 269 4
- Builder Gifted Deposit and capital gains 405 13
- Auto-Enrolment 171 3
- Annual subs 142 2
- Statement of Earnings, no P45 132 2
- Expenses paid by director (the owner) 162 2
- Mileage and Self Assessment 134 1
- ICAEW professional subscription and tax implications 188 4
- CGT Relief on Share Sale in LTD company 317 5
- Problems filing paper copies of accounts / computations with HMRC 485 9
- Payroll Manager not reoprting properly 302 7
- Directors remuneration declared after year end PAYE/NIC 596 25
- Advice please on best way forward 418 6
- I received penalty as I didn't submit full payment submission (fps), how to correct it? 318 2
- Related party loan write-off - justification for treatment 360 7
- Skandia using wrong address 1,400
- Nil Rate Band Trust - index linked debt by way of charge over property 719
- Any views 657
- HMRC Employers Diary 489
- International interest certificate 408
- Stamp Duty on share for share exchange 363
- Sale of business 307
- NOVA 221
- IR35 & Managed Service Companies 216
- Advertising services? 214