Transfer of money to an LTD

[Yiannis17]

Afternoon

I met a widowed wife who has has inherited a large sum of money from her late husband. She has asked me to transfer the money into a Limited company where her children are equal share holders and directors. She has no involvement in the company which is currently being set up for that purpose alone.

As well as the gift being a PET, am I missing anything else here?

Thank you

[AGoodman]

1. Doesn't sound like a great idea.
2. She needs to transfer the money:

- as a loan;
- for full MV consideration such as issue of shares; or
- while still 100% owner of the company

otherwise there will be a chargeable transfer not a PET (you can only make PETs to individuals).

Strictly speaking a gift to a 100% owned company is also a chargeable transfer but there is no transfer of value so a chargeable transfer of nil value.