HOW MUCH SHOULD I CHARGE FOR NEW SHARE

LTD COMPANY HAS PROPERTY WORTH THREE MILLION

Didn't find your answer?

THE PROPERTIES COST 1.3 MILLION WHEN PURCHASED AND I WANT TO KNOW HOW MUCH NEW INVESTORS SHOULD PAY FOR SHARES AS THE COMPANY WOULD BE LIABLE FOR TAX ON PROFITS WHEN PROPERTIES SOLD AND YHEY WOULD BE A MINORITY HOLDER

Replies (19)

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By User deleted
08th Dec 2022 16:48

If you've got properties worth that much you can afford to pay for professional advice.

And turn the Caps Lock off

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By Anonymous Accountant
08th Dec 2022 16:52

Stop shouting!

You haven't given us nearly enough information - we don't even know how many shares the company has.

I think you should seriously consider talking to an accountant and seeking legal advice for a company of that value, you won't get the answers you need on any forum.

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By User deleted
08th Dec 2022 16:55

PI to 2 decimal points

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By Paul Crowley
08th Dec 2022 16:56

Who is issuing the share?
What is the exit plan for all shareholders?

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Replying to Paul Crowley:
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By Hugo Fair
08th Dec 2022 17:12

We could ask 100+ questions and (even if fully answered) still be unable to provide a solid answer to OP.

I've never seen such a poor post (not even amongst the deliberate wind-ups of which this may be one for all I know) ... hopefully it will disappear if ignored.

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By Leywood
08th Dec 2022 17:30

a penny.

What an utterly ridiculous question to ask on a forum.

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By David Ex
08th Dec 2022 17:55

Who valued the property/ies?

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RLI
By lionofludesch
08th Dec 2022 18:01

Here's one of several key pieces of information missing from this crass question.

How many shares have been issued already?

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By Carl London
08th Dec 2022 19:51

I reckon £1 per share.

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By D V Fields
09th Dec 2022 09:29

You should sell them at whatever the going rate is - which will be determined by the available market. I would also revisit your logic as for a "liable for tax on profits". Otherwise good luck with explaining it to the existing shareholders and the potential new ones.

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Replying to D V Fields:
By Ruddles
09th Dec 2022 15:55

The logic is quite sound. Take a very simple scenario - you own 100% of a company that has a debt-free property that cost £1m, purchased with proceeds of issued share capital. You now want to sell me your shares when the property is now worth £4m. You might expect me to pay £4m for the shares - no chance.

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Replying to Ruddles:
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By D V Fields
09th Dec 2022 21:03

I do agree taxation is a factor in the actual return on investment but it is not an exceptional item which was the main point behind my comment.

The buyer will make their own judgement on net returns and what they are willing to pay taking into account their expectations. Existing shareholders will do the same (they may be sitting on losses they can utilise in some way), they may be expecting property prices to increase further or maybe decrease. Who knows what the tax rates will be if and when the sales is realised. The £4m might be a bargain.

As always it comes down to willing buyers and willing sellers with their own agenda. Some due diligence needed too.

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By JCresswellTax
09th Dec 2022 10:12

£8,060

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Replying to JCresswellTax:
Red Leader
By Red Leader
09th Dec 2022 10:30

... is the correct answer.

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Replying to Red Leader:
By ireallyshouldknowthisbut
09th Dec 2022 11:06

Nah, it clearly 14 quarks and a cabbage.

Did you not read the question?

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Replying to ireallyshouldknowthisbut:
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By Dib
09th Dec 2022 13:27

With you on the quarks but I don't like the strangeness of the question or the lack of charm of the poster. Or, am I just showing my age?

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Replying to Dib:
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By Hugo Fair
09th Dec 2022 17:54

"Copernicus had those Renaissance ladies
Crazy about his telescope
And Galileo had a name that made his
Reputation higher than his hopes
Did none of those astronomers discover
While they were staring out into the dark
That what a lady looks for in her lover
Is Charm, Strangeness and Quark"

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Replying to ireallyshouldknowthisbut:
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By Dib
09th Dec 2022 13:28

duplicate

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