Practice succession/transfer of shares

Practice succession/transfer of shares

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I going to retire in 10 years time. I want to pass my practice on to one of my staff (let's call him JS) who has been with me for many years. We are not connected parties. The idea is that JS buys it at a discount between 25% and 50% of the market value. I'm a sole trader. I'm thinking of incorporating the practice and over 10 years transfer (gift) a % each year to JS. At the end he buys the remainder at the market price. Anyone with any experience of something like this or any comments on any tax consequences? Or can point me in the direction of any guidance that might be out there. I'd be eternally grateful.

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By partner55
24th Jul 2015 15:23

Problems with your ideas

Shares that you gift to the employee will be treated as being given because of their employment and will be taxed as income. They will be treated as Employment Related Securities.

Why don't you look at one of the special schemes such as EMI to avoid this?

You need to get proper advice. 

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