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Where Taxpayers and Advisers Meet

Loan of crowdfunded, non-IPO'd shares

cja
Posts:2
Joined:Mon May 08, 2023 3:06 pm
Loan of crowdfunded, non-IPO'd shares

Postby cja » Mon May 08, 2023 3:14 pm

Hello,

Fingers crossed you can help me...

I am required by virtue of a policy at my employer to dispose of some crowdfunded, non-IPO'd shares (held at CrowdCube) for audit independence purposes.

I saw this thread:

Loan of Stocks & Shares
https://www.taxationweb.co.uk/forum/viewtopic.php?f=3&t=59777

... and wondered if I could perhaps do something similar with my shares to temporary assign them to someone else for the duration of my employment?

Failing that, if I had to actually transfer then in name (via CrowdCube), would such non-IPO'd shares be subject to CGT given that they're not actually tradable?

Thanks in advance!

AGoodman
Posts:1767
Joined:Fri May 16, 2014 3:47 pm

Re: Loan of crowdfunded, non-IPO'd shares

Postby AGoodman » Wed May 10, 2023 10:08 am

whether you can lend them will primarily be legal rather than tax, chiefly:

- would that satisfy your firm policy on independence?
- can you in fact transfer the shares - some company transfers require the consent of the company (i'd imagine you can)

If you just sold them then yes, you'd potentially pay CGT on any gain, subject of course to your annual exemption.

billypiper
Posts:114
Joined:Wed Aug 06, 2008 4:10 pm

Re: Loan of crowdfunded, non-IPO'd shares

Postby billypiper » Wed May 10, 2023 1:12 pm

Are you married

If so assign them to him or her

Dennis

07802704840

cja
Posts:2
Joined:Mon May 08, 2023 3:06 pm

Re: Loan of crowdfunded, non-IPO'd shares

Postby cja » Thu May 11, 2023 5:59 am

Thank you for your replies - much appreciated.

whether you can lend them will primarily be legal rather than tax, chiefly:

- would that satisfy your firm policy on independence?
- can you in fact transfer the shares - some company transfers require the consent of the company (i'd imagine you can)

If you just sold them then yes, you'd potentially pay CGT on any gain, subject of course to your annual exemption.

I've had another look through the (lengthy) document based on your first question and I think, likely, it doesn't :(

I could, though, transfer the shares to my wife's sister - but would CGT then be applicable; ie. is this a 'paperwork' exercise, or do those shares have some underlying value that needs to be acknowledged?

Are you married

If so assign them to him or her

I am, however - for reasons I don't quite understand - apparently by me signing the Independence policy then she also must comply :o

I'm not sure how that works for couples that have totally separate (and sometimes private) financial arrangements, mind! Maybe a sub-question should be 'how does that work?!'.


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