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Where Taxpayers and Advisers Meet

CGT / ER

pasco
Posts: 2
Joined: Wed May 15, 2019 1:54 pm

CGT / ER

Postby pasco » Wed May 15, 2019 2:07 pm

Hi all - looking for some advice on ER...

I have a few shares in a company given to me over 3 years ago. This gave me 5.2%. Over the last 3+ years the company has grown, taken on more staff and investors, diluting my share to 4.7%.

I joined the company full time (PAYE) and started looking at how my holding could be taxed if the company were to be sold. I am working on the assumption that my diluted holding would no longer qualify for ER tax rates (given it was allocated 3+ years ago) and so I am now trying to find a way to secure that rate and its significant savings.

There is potential to acquire shares from an existing holder to move back over the 5% threshold, possibly using deferred consideration so that I don't have to find the money now and they don't get hit with CGT until the *potential* sale further down the line - however far that may be??

Any other ideas welcome.

SteLacca
Posts: 443
Joined: Fri Aug 07, 2015 2:17 pm

Re: CGT / ER

Postby SteLacca » Fri May 17, 2019 10:23 am

Have a look at Investor's Relief. https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg63500p

pasco
Posts: 2
Joined: Wed May 15, 2019 1:54 pm

Re: CGT / ER

Postby pasco » Fri May 17, 2019 10:46 am

Have a look at Investor's Relief. https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg63500p
I didn't pay anything for the shares so wouldn't qualify... "subscribed for with new money that benefits the company"


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