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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
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Experience:  English solicitor with over 12 years experience
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I understand that the value of shares in a private trading

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I understand that the value of shares in a private trading company are 100% protected against Inheritance Tax. As I am owed a substantial sum from my Director's Loan Account I have in mind converting some of this into shares. Would such "extra" shares be similarly protected? And if so, could this be accomplished by a simple book transfer?
Customer: replied 5 days ago.
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Customer: replied 5 days ago.
ok to wait.
Customer: replied 4 days ago.
Still awaiting 13.20 07/11/19
Customer: replied 4 days ago.
Still awaiting your answer 17.20 07/11/19 I'll pay double if I get an answer within the next hour
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Find somebody please (maybe Big Duck) sooner rather than later. Thank you
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Thank you for your patience,
Nicola

Hello,

 

Yes, shares in a private company qualify for 100% Business Relief for inheritance tax purposes as long as you own the shares for 2 years before you pass away.

 

Your loan can be converted to equity i.e. shares in the company and if you live for 2 years after the debt is converted to equity, the shares will be exempt from IHT.

 

Further information appears here: https://www.gov.uk/business-relief-inheritance-tax/what-qualifies-for-business-relief

 

All the best. Please click on 5 stars

UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 6230
Experience: English solicitor with over 12 years experience
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