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Where Taxpayers and Advisers Meet

Tax on shares when director leaving

KawasakiZ650F1.
Posts: 1
Joined: Thu Apr 19, 2018 8:18 pm

Tax on shares when director leaving

Postby KawasakiZ650F1. » Thu Apr 19, 2018 8:23 pm

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I wonder if it might be sensible to pay notice as redundancy as my role is no longer applicable and is not being replaced.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
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Tax on shares when director leaving

Postby GlobalTaxAdviser » Mon Apr 23, 2018 10:38 am

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


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