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eis Shareholder owns more than 30%

An original shareholder who subscribed for 30% of a company, buys another 5%

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One of our clients bought 30% of the shares in a trading company subscribing for 30% of the shares in 1999 and claiming 30% relief. The cost was £50,000. In 2008 he may have acquired another 5%, he was unclear, but never registered the extra 5%. He certainly gave a shareholder £7,000, although no specific details were documented, and he is unclear if it were a loan, or to buy the shares. The entire holding is now being sold, with the company worth about £1,500,000.

he will either get £450k and his £7k loan back, or £525,000.

what I’ll his tax be in either case?

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23rd Mar 2019 10:12

More information needed

"may have bought"
What do the records @ Cos House say ??

Did he really part with £7000 without any documentation?

What does the shareholders register say?

What does the recipient of the £7000 say?

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to bernard michael
23rd Mar 2019 12:48

There is nothing at Companies house, the shares are registered in the original shareholder, but he did give him £7k
So the original shareholder may be the legal owner but not the beneficial owner

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to bernard michael
24th Mar 2019 07:02

There is nothing at Companies house, the shares are registered in the original shareholder, but he did give him £7k
So the original shareholder may be the legal owner but not the beneficial owner

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24th Mar 2019 09:06

That leaves 2 of my questions

Was there any documentation when the £7000 was passed over ?

What does the recipient of the £7000 say?

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25th Mar 2019 07:51

Does the other shareholder know that the £7k is now worth £75k?

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to atleastisoundknowledgable...
25th Mar 2019 13:11

nothing is documented , it’s really unclear
And only looking to buy the shares owned by that shareholder

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to atleastisoundknowledgable...
25th Mar 2019 13:12

Probably, but he won’t be paid out at this stage

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