How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I have agreed to sell my shares in my company to X Ltd for

Resolved Question:

I have agreed to sell my shares in my company to X Ltd for £100k. I bought the shares for £100 when I started the company. Instead of cash, I am getting shares in X Ltd to the value of £100k. Is there any CGT or is the CGT deferred to when I sell the shares in X Ltd?
Many Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Since there would appear to be no cash involved, there will be no immediate liability to Capital Gains Tax. That will arise if and when you sell your shares in X Ltd. You may lose out on entrepreneurs' relief which limits any CGT to a rate of 10% if you qualify, depending on your situation with the new company, ie whether or not you are working for it amongst other criteria. Take a look here for information on ER.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions