I have a small limited company where there are 3 shares of £1 each. These are held one each by the director, his wife and his mum.
The director's mum wishes to dispose of her share and the director and his wife want to be left with equal shares. No consideration is required for the share.
Please could you advise on the simpliest way to acheive this and the forms to complete?
Many thanks.
Replies (5)
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Best solution find a deed of trust lying in a draw somewhere that says that mum holds her share as nominee for son and daughter-in-law. Get them to search the house, it'll show up.
You will need to increase the share capital. Mum then gifts shares to them both. You will need a valuation and to claim holdover relief on all tax returns. Also consider IHT. Also consider ERS although family exemption should apply.
If the value of her share is less than the annual exemption then I would probably transfer at market value.
Buyback may be easier if sufficient reserves but more paperwork and clearances etc.