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.
- Going to need a tax, insolvency and legal specialist I think 180 2
- Goods Purchased for Rental 69 1
- Letting relief on property transferred to a spouse 240 9
- Buy to let and capitak gain 42 1
- ideas for a bonus scheme for accountants 638 10
- Charge for use of credit card - permitted 298 7
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 254 10
- New Built in oven - allowable as repair? 242 4
- Accounting for Bank Loyalty Rewards? 101 1
- General tax book with planning 226 5
- Anybody heard of Geniac, the new De Lorean? 163 3
- tax on apprenticeship income 191 1
- are receipts needed? 537 14
- Gift of property & improvements 150 3
- VAT Invoice 207 6
- VAT code for invoice from not VAT registered company 281 5
- Error in past Corporate tax return 379 6
- Limited Company - Personal Bank Account 3,277 69
- 2013/14 failure to submit end of year submission 315 11
- Company overdue but wants to be struck off 821 32
- Nil Rate Band Trust - index linked debt by way of charge over property 903
- International interest certificate 514
- NOVA 369
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 311
- Management expenses for investment company 270
- Bonus Bonds 263
- Entertainer withholding tax in Australia 178
- P11D benefit received by widow 153
- Insolvency and whistle blowing 146
- Filing past due corporation tax returns 145