Rebecca's recent write up of a share ownership case, and reader responses to it, come on the day I learn from a client that his personal company has had large inward investments, from 2 sources, in return for equity on a "deed of trust" basis.
I've yet to establish the details and degree of formality, but do these arrangements stand up well to scrutiny? I am aware declarations of trust are common for differentiating legal and beneficial ownership of property between spouses, but haven't come across for shares with unrelated investors in my small practice.
I'm wondering about any tax, CGT and stamp duty implications of a couple exchanging beneficial ownership of their shares for funds into their company (bizarrely accounted for on a company invoice, one with VAT charged).
But this feels more like the tens of thousand pounds of 'Angel' investment into the young company. Should the investment be treated as proceeds received personally and then lent to the company (with no new share issue, I can't see that SEIS is in play.)
If this is business angel investment, is this a typical way it is structured?