Forum - Limited Company Shares

Limited Company Shares

Fri, 30/09/2011 - 00:18 — Slash72

Our family business was originally owned 50:50 by my father and our ex. parent company (each owned 5000 £1 shares).
Last year we bought out our parent company, leaving my father as the sole share holder of 5000 £1 shares.

He / We now wants to transfer shares between the family members who have worked for the company for the last 25 years, but we are worried about the amount of tax that would have to be paid.

If for instance the company is now worth £100,000 would tax be payable on this sum, or can the original value of 5000 shares at £1 each be divided into 5 equal members (ie. 1000 shares each) and would the tax only be due on this amount ?

I really don`t know where to start on this. Our solicitor asked us to contact our accountant about the matter but he isn`t the sort of accountant who seems to know about tax implications.

We really would appreciate any advice on which direction to head in.

Any assistance would be greatly appreciated in which direction to approach this matter.

Thanks,

Chris