Thanks.The problem you have is that if you return the shareholding position to what it was 5 years ago by giving some of your shares to your father which you can do, you will be treated as having "sold" them to him at the open market value with potential Capital Gains Tax consequences.for yourself. The "disposal" will also be a gift for Inheritance Tax purposes. If the company paid dividends, then your father would be entitled to a proportion based on his shareholding though it is possible for a shareholder to "waive" their dividend in favour of the other shareholders.Companies House have to be notified of changes in directorships and shareholdings and that is probably how the mortgage company became aware of the fact that your father was no longer involved as a director or shareholder though it appears to have take some time for them to notice and/or take action. No doubt, they will ask for documentary proof of any reversion to the former position.It is possible to claim entrepreneurs' relief or business asset holdover relief in certain circumstances for a disposal of business assets (shares in this case) as you will read here. However, the company must be a trading company. A company which owns buy to let property will almost certainly not qualify as a trading company. I hope this helps but let me know if you have nay further questions.
Many thanks for the reply my further question would be what is the capital gains tax rate?
Am I correct in thinking it is my personal income you are referring to and not the income of the limited company?
Also I am carrying a personal capital gains loss of £15000 over , can I assume that I can make use of that? My wife also has a £15000 loss I don't suppose I can make use of that could I?
Last question if I delay this transfer to mid April 2014 (new tax year) is it likely that the capital gains exemption might increase and when would the CGT be payable , 2015?
you have been very quick to answer and of great help I will of course be rating you as excellent.