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Sole company owner selling shares to one employee

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A sole owner of a limited company wishes to sell his shares in the company to one employee over ten years, such that the employee effectively pays for the shares from increased remuneration and/or dividends paid to him from the same company. Thoughts on an effective tax strategy would be appreciated.

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By zarar
06th Feb 2019 21:45

Well they both need to take independent advice on this from relevant professionals - this is not the place to ask this

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By zarar
06th Feb 2019 21:50

Sorry duplicate post deleted

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RLI
By lionofludesch
07th Feb 2019 08:10

Is he selling the shares in ten batches ?

Might be a CGT issue there.

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Replying to lionofludesch:
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By fujifuji
08th Feb 2019 15:10

Why isnt it the place to ask?

Yes the shares will be sold over 10 years, probably 10% per year. I am interested in the most tax efficient way to structure the deal.

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Replying to fujifuji:
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By Tax Dragon
08th Feb 2019 21:15

What are we talking, a hundred quid? A hundred grand? A hundred million?

What determines the price paid? Does it vary from year to year? What happens if four years in the employee decides s/he's going to quit to stand as an MP?

Has anyone actually talked about the objectives of the persons involved with the persons involved? It's not unusual for a client to come to you asking how to do this sort of thing because they think it's the answer to their questions - rather than come to you with the questions and work through to an answer with you.

I hope though that I've answered at least one of your questions.

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