Liz Hunter, Nicola Simmons and Moustapha Hammoud (Mishcon de Reya) explain the personal, employment and corporate tax issues.
Personal tax considerations
There is often merit in thinking about pre-business sale planning from a personal tax perspective. This section will therefore consider the personal tax implications of the following two types of disposals:
a direct sale of shares in a UK company by an individual; and
the transfer of the shares in a UK company into a UK resident trust after which the trustees would then sell the shares.
A sale of the shares in a UK company by an individual
CGT implications: The sale of shares in a UK business constitutes a disposal of a chargeable asset for CGT purposes. CGT is levied on the net chargeable gain which is calculated by deducting allowable costs (TCGA 1992 s 1)...
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Liz Hunter, Nicola Simmons and Moustapha Hammoud (Mishcon de Reya) explain the personal, employment and corporate tax issues.
Personal tax considerations
There is often merit in thinking about pre-business sale planning from a personal tax perspective. This section will therefore consider the personal tax implications of the following two types of disposals:
a direct sale of shares in a UK company by an individual; and
the transfer of the shares in a UK company into a UK resident trust after which the trustees would then sell the shares.
A sale of the shares in a UK company by an individual
CGT implications: The sale of shares in a UK business constitutes a disposal of a chargeable asset for CGT purposes. CGT is levied on the net chargeable gain which is calculated by deducting allowable costs (TCGA 1992 s 1)...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
