My client is a limited company owned 60/40 by 2 directors shareholders. The larger shareholder wants to gift 5% of the company to the other so the new shareholding would be 55/45.
I understand there will be capital gains tax implications for the larger shareholder, although gift releif will be available.
for the smaller shareholder, I beleive this transactions will fall within employment related securities and income tax to pay. What would happen if the 5% went to the smaller shareholders wife and not him. She is not an employee or director of this company.
Thank you in advance