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Transfer of shares


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In the event of a separation of an unmarried couple who own a company 50/50 between them, is a gift holdover relief necessary if they have both agreed between them that the shares are worthless (maintainable earnings are close to nil after allowing for commercial salaries) ?

Is it fair to assume that a gift relief claim isn't necessary but if there were value, I assume one would be? 

Also if there were value, is there any potential ERS issues for the recipient or is there an exemption in the circumstances? 

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By Duggimon
24th May 2022 09:06

If the shares are actually worthless then gift relief is not necessary. I would want to agree that those shares are worthless though before advising my clients not to bother with gift relief though, not just rely on their valuation.

Profit is not the only metric by which a business is valued, are there any assets? If you genuinely agree there's no reasonable way these shares could be worth anything, or worth enough to result in a taxable gain, then no gift relief is required.

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