Hello all,
Any help on the below would be most gratefully received. Here is the skinny:
I am Managing Director of an established e-commerce company.
I have negotiated a deal to buy shares from an external shareholder (i.e not the founder/s) but have no idea about the tax implications of such a deal!
I earn decent money from the company already (just short of 6 figures) and am buying a 15% stake for just short of 6 figures again.
I don't currently own any equity - hence the need to buy the shareholding from someone else (i.e. I am not being gifted any equity currently).
The plan would be to potentially make money back when/if we exit in the next few years.
Does anyone know what I need to consider here? Someone mentioned 15% is the tipping point for some PAYE implications but it's lost on me. There's talk of being gifted 2% by the company next year so that would take me to 17% but is that any different when it comes to tax?
Do I pay tax on buying back the shares? Do I pay if I ever sell them? Does it affect my tax return (which I don't do myself currently as I'm below the 100k threshold)?
Bearing in mind, despite being the MD I am a bit weak when it comes to tax matters!
Thanks a lot in advance for any suggestions or expertise.
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