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.
- Have you staged yet for auto enrolment? 599 2
- Free-standing washing machine - unfurnished lettings 400 4
- VAT Return Errors 119 2
- Do I need a smartphone? 1,857 67
- Adjustment to previous self assessments 84 5
- inflation rate year on year 111 3
- MAAT vs ACCA 655 12
- Yorkshire Day 568 38
- Company valuation for IHT purposes 149 4
- Principal Private Residence relief on two semis knocked together 152 4
- Subcontractor and CIS Deductions made by Contractor 364 16
- Entrepreneurs relief sale of business to two different buyers?? 121 3
- SMP reclaimable by employer 276 7
- Agent help line - long queues? 228 4
- the umbrella scheme for PAYE 123 1
- Deleted question? 676 15
- Self Assessment Tax Return Required ???? 305 8
- Company no longer showing on Companies House web site 363 8
- EU VAT Registration Thresholds 147 6
- E-Magazines and pdfs 150 3
- Cancelled 463
- Cancelled 383
- SAGE Payroll Data for Import to MS Dynamics AX 374
- Probiz 355
- Phishing emails purporting to be from CIPFA? 259
- Is this UK incapacity benefit taxable in UK or Jersey? 233
- Another HMRC computer glitch? 227
- More spam 182
- Does anyone have SCI unit contact details? 159
- Employee Benefit Trust 150