The other company has recently been formed - in effect I would be gifting or donating my shares to shares to the company so I guess it would become a subsidiary. So in effect once NewCo makes a profit can it offset the losses from the newly to be acquired subsidiary - that is the point I am driving at?
When shareholders came in originally they paid £1 per share - the nominal value is £0.01. I want to make sure that there is no problem with gifting them (ie below nominal value) from an Inland Revenue point of view (people will be being asked to contribute time FOC).
I will need clarification on the other questions I have asked as well at the bottom of my last message.
I think what I am trying to establish is that if the act in itself of making the existing entity a subsidiary of NewCo affect EIS eligibility for those already invested? I just want to make sure I am protecting investor interests OK.
Also just to clarify, if shares are "gifted" (perhaps in exchange for support in terms of time and/expertise) that there is no need to make a nominal payment for shares (you sometime hear of company's being sold for a £1).
And finally, bearing in mind if NewCo was only formed a few months ago and losses were made for last year and to end this year, if company becomes subsidiary can the parent offset these rolled up losses from the subsidiary into the NewCo?