Can you please tell me the tax implications for the transfer of shares in a private limited company. There are three directors and they all hold 10,000 shares already between them. One director who is the majority shareholder of 5,500 shares now wants to gift 2,000 of his shares to the other directors. The shares are valued at £5 each and for CGT the gain is under the annual exemption and no capital gains tax is due. As far as I can see the only tax which may be due is inheritance tax if the director who gifts the shares dies within seven years.
Or would there be implication for income tax as this is an employment related transaction?
The director is also considering selling the shares to the other directors. Is there stamp duty to pay?