Incorporation of Business - Reliefs

[321FAMILYGUY]

Hi

A business has incorporated a month ago from sole trader due to a non management order from Health & Safety. The company formed on 15 May 2017 The owner is 100% shareholder and the Director is running the business ( but was not allocated shares at incorporation.


They agreed that the Director would have 50% Shareholding.

The incorporation of the business is tax free with reliefs for the sole trader. But the Director is a unrelated Party.

A) can we transfer 50% shares to the director as a founder without Income Tax and not trigger a form 42

B) CGT on the Transfer of 50% Shares is covered by Gift Relief/Holdover relief

c) should this have been done on Incorporation or Would it not have made a difference.

d) how can we trf the 50% shareholding to unrelated party founder tax free as the the business had very little value to the Health and safety notice.

He is essentially given away 50% of his business.

Thankyou in advance

[pawncob]

The shares have par value, so just transfer them. No CGT/Hold Over etc.