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I was satisfied with the speed and content of your reply to my question, however now I am not so sure.
Your reply states that the fact the shares cannot be traded has no bearing, but I had an inkling this was not the case hence I put this information in when asking the question.
I have now discovered on the HMRC website very clear guidance that CGT is normally due on the gifting of shares, however Gift Holdover Relief can be applied to shares in unlisted companies. Further research indicates this is covered by Section 165 Taxation of Capital Gains Act.
I conclude that your reply was either incorrect or incomplete, and therefore am no longer satisfied with your reply not belief I should have to pay for the advice received.
I await your response, however in the meantime I intend to click on the link "not satisfied with your expert" and see where this takes me.
Sorry Sam, I feel more dissatisfied by this follow up answer.
My original question asked whether there was a Capital Gains Tax liability if my mother gifted her shares to me. I did not share any information regarding either my or my mother's age or status within the company other than as shareholders. The important detail was that the shares in the Company cannot be traded - which in your reply you described as irrelevant. I was hoping to receive a reply which would have confirmed that CGT has to be paid on the disposal of shares that can be traded "normally" (as I was already aware of this), but also that there was the ability to avoid CGT at source in "closed" companies due to the provisions of gift rollover relief (as I subsequently understand to be the case).
In your second reply you are assuming my mother would benefit from Entrepreneur's Relief. She is neither an employee nor a Director therefore I am unsure why you would suggest this. Conversely I am a Director who holds more than 5% of shares in the Company already. Therefore I am potentially in a much better position to take on any CGT liability. Therefore my question relating to CGT at source was the most pertinent issue and the one I required advice upon. You have also assumed my status as recipient of the shares and made judgement that any gift with rollover relief would be tax inefficient.
Part of the reason for not providing any information other than the basics is that the company is currently negotiating a sale and this is subject to a non disclosure agreement. Hence possession of shares at the time of sale is quite important from a tax liability perspective.
I am aware of the potential Inheritance Tax liability, however given the present value of my mother's estate, IHT will be applicable to both of us if the 7 year (or taper) milestone is not reached.
thanks for your contact. I have the information I require (albeit more through my own endeavours than the advice received). Whilst I was previously unsure about a potential CGT liability due to the proposed transfer, I am assured that gift rollover relief is applicable due to the type of shares involved and this may have its advantages given the circumstances of the potential gift.
thank-you. Your link was to some of the information I also found. My initial query was prompted by the potential future sale of the family business that both my mother and I have shares in. I am a Director with in excess of 5% shareholding whilst my mother is not. I was aware that I would receive entrepreneurs relief on my shareholding if the business was sold and has an inclination that a gifted transfer of shares could be free of CGT but was unsure of the circumstances but thought it might have something to do with the status of shares. I sought advice having read on the HMRC website that "normal" tradeable shares are subject to CGT when gifted.