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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4425
Experience:  FCCA FCMA CGMA ACIS
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Client has shares in a company that runs a farm. he wants

Customer Question

Client has shares in a company that runs a farm.
he wants to transfer half his shares to his mum for a consideration of £50,000.
the actual worth is alot more.
Its worth say £500,000.
what my clients liability tax wise.
regards
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Benjamin Franklin once sagely observed that in life there are but two certainties, death and taxes. This is true here. Your client can escape tax on this transaction, which would normally be caught by Capital Gains Tax (CGT), by the use of roll over relief as this is agricultural land. However, on ultimate disposal, by his mother then CGT would kick in on any gain over the original market value as at the date of acquisition. The parties would be well advised to also have a valuation agreed at the time of transfer. I do hope that you find my reply of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.