Buying More Shares in a company

BarryJK · Postby **BarryJK** » Tue Mar 04, 2008 11:47 am

If a person is willing to sell you some of their shares in a company, worth for instance Â£80,000. How many years should this be spread over if they are basic rate tax payer?

pawncob · Postby **pawncob** » Tue Mar 04, 2008 1:49 pm

The question does not make sense in its present format.

BarryJK · Postby **BarryJK** » Tue Mar 04, 2008 2:16 pm

If they received Â£80,000 all at once for selling the shares then surely they would be taxed all in one go. However, if they sold them over a period of say 4 years, they would receive tapered tax relief.

atwtaxation · Postby **atwtaxation** » Wed Mar 05, 2008 8:01 am

Barry,

I agree with Pawncob - a little more info needed.

Tax is due on net proceeds, less costs, indexation allowance (if applic) and any reliefs (including, as you mention, taper relief)You will also only pay CGT on gains to the extent that they exceed your annual exemption - currently Â£9,200.

What type of shares? Are they quoted / unquoted?

You are possibly aware that the CGT regime changes from 6 April 2008??

Sorry I can't be more help. Let me know if you have any queries.

Cheers
Andy

atwtaxation@googlemail.com