Tax consequences of issuing bonus shares
Client wishes to acquire 75% of share capital of target company. At present issued share capital in that company is 3 ordinary £ 1 shares. Easiest way would seem to be company issue say 97 bonus shares to rank parri passu with existing shares and client acquires 75 of total issued share capital.
Query is what are the tax consequences on both the individuals in receipt of the bonus shares and the company.
Alternatively would it be better to hive the business down into newco by say issuing 33 and a third shares in newco for every one share in existing company and acquire 75 % of the shares in newco.
Comments appreciated !
- I used to think HMRC contact lines couldnt get any worse................ 311 5
- Summer festivals! 202 5
- NHS England and the Off Payroll Worker Team 115 2
- Can I pay into a pension? 165 3
- The Accountancy Party: What’s in your manifesto? 173 4
- Personal Expenses 209 5
- Furnished Holiday Lets & VAT 150 6
- Moneysoft or Sage payroll with auto enrolment? 471 10
- Do accountants work at home? 624 12
- Accountants Qualifications 287 3
- SPORTS SUPPLEMENTS 83 1
- US Company charging VAT. How to account 164 2
- PPR for transferee spouse 84 1
- VAT on Security Services to Foreign Companies. 77 2
- Best Tax / Accounts Production software 1,004 16
- Rogue Accountant 3,966 58
- Where has Portia gone? 6,225 120
- How to introduce funds in to a Limited by guarantee company 87 1
- ER Relief 119 2
- 'Workers' for AE purposes 131 1