I act for a UK trading company which has 2 equal shareholders - whilst remaining a director, one of the shareholders emigrated in December 2010 and has remained non Uk tax resident since and is now an NZ resident and citizen.
He is married with 2 children.
He has a terminal illness and the shareholders had a shareholder protection insurance paying £750k in Trust to the surviving shareholder that allows him to purchase the shares from the estate on death or directly from the individual given a less than 12 month terminal prognosis, which unfortunately is the case.
I am wholly confident that should the share transfer happen whilst the non-res director is alive, there is no CGT liability and nor would there be on death.
However, I am slightly concerned that a transfer for cash whilst he is alive may give an IHT issue - the BPR obviously is lost as the asset is now cash.
Does an immediate transfer of funds to the spouse help at all or am I missing something obvious?
Also are the upcoming changes in the deemed domocile going to change matters after 6th April?
Thanks in anticipation.