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.
- Directors bonus 81 1
- HMRC Unpaid Debt Collector 156 5
- do you receive fewer phone calls than some years back because of emails 112 3
- break even point 1,093 33
- The return 709 27
- Sell business after leaving country 317 6
- Takeover of Annual PAYE scheme 63 1
- IHT Query 389 8
- Profit & Loss accounts filling when tax is withheld overseas 86 2
- Charity accounting 61 2
- Closing down - who should buy whom? 990 44
- IHT on offshore settlement 144 2
- Get it off your chest 150 2
- How best to declare a mistake on a tax return by previous agent 134 1
- Deferring taxable income until after 5 April 350 2
- Limited Company trading status. 325 8
- Payroll 179 6
- Classic cars investment 509 14
- Vat registration 172 5
- VAT ON MAINTENANCE PROVIDED TO ESTATE AGENT 103 3
- Possible Partnership? 549
- Lunatics in charge of the asylum - Bluestone 545
- Tax and accounting treatment on long lease granted from freehold 479
- New Fangled Penalties 346
- Clubs and Taxable Income 286
- Purchase of property freehold - capitalisation of costs 269
- Loans to other companies 214
- Closed PAYE schemes and auto enrolment 205
- Outsource Data Entry 172
- Lenovo – Superfish & Komodia – is your PC vulnerable 172