Tax on shares when director leaving

[KawasakiZ650F1.]

I wonder if anyone might be able to help?

I have been a director of a business for 19 years but it's time for me to leave now and it's amicable

I have agreed a price for my shares to be bought (about £50k) but haven't agreed a notice period.

I am going into a new business which is currently my hobby buying and selling classic motorbikes

2 questions really.

What's the best way for the money to be paid to me to minimise tax? My new business is me as a sole trader VAT registered.

I wonder if it might be sensible to pay notice as redundancy as my role is no longer applicable and is not being replaced.

Any thoughts please?

[GlobalTaxAdviser]

This is a little complex as depending on the conditions the selling of shares could have income or capital tax implications. You could end up paying tax of only 10% if it comes under a capital transaction. Remember there is stamp duty too.

I assume the company is buying back the shares ?

The Shares have some value so saying this is redundancy payment may not work and would be misleading

I would suggest you do take advice and important to get the correct paper work drawn up too,

Kind Regards

GTA