CGT on creation of new shares

[robpierre]

Hi all,

Could someone please give me a little guidance on the scenario below please?

A client has 1x £1 share in his company. He wants to give 8% of the company to an investor for £20000.
Therefore, the currrent shareholder/director is going to buy 91 £1 shares at nominal value (taking his shareholding to 92) and the company will sell 8 shares to the new investor at £20000.

My question is will there be any capital gains consequences for the current director/shareholder?

Similarily he may be wishing to dilute his shares further and fetch another 8% shareholder in at a later date with the creation of new shares. The new shareholder will take 16 shares, the existing 8% shareholder will take another 8 at nominal value and the original holder will take another 76 at nominal value taking his total to 168 of the 200 available (84%).

Any help is appreciated, I'm pretty much a CGT novice.

Many thanks
Rob

[section 44]

No.