Hope you guys can help please..
A company has share capital of £244.70 with share value at £0.10 each
Shares have been divided as follows:
Person A = 2210 Ordinary Shares
Person B = 175 B Ordinary Shares
Person C = 62 C Ordinary Shares
Person C is a client that I action Self Assessments for.
She received 62 shares at £0.10 each = £6.20.
My question is: Does she have to pay tax on the shares? Obviosuly the value is under £50 and therefoe HMRC do not consider them as needing to be taxed as 'negligebale'.
OR, is it that I should be looking at the Company shes works for value and applying the perecentage that she owns
I.e as she own 62 of 2447 shares = 2.534% of the Company should tax be payable at 2.534% of the Company's value?
The Shares were issues on 23rd March 2020 and therefore within the 19/20 tax year.
Clearly, shareholdings and tax treatment not my speciality so any guidance would be very much appreciated.