Can somebody confirm whether I am correct in my understanding of the following...
One director is buying the shares of the other (retiring) director. Shares valued at £3,000 and this is the agreed sale price.
Purchaser to pay £100 per month over 30 months. I am fine with the tax side of things, just interested to know whether the shares would normally be transferred at the outset, i.e. when signing the sale/purchase agreement or whether the shares would only be transferred when the final installment of the deferred consideration is paid?
I think that the transfer would normally be made immediately (once the agreement has been completed). Is that the norm? What if the buyer defaults on future payments?