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Sam, Accountant
Category: Tax
Satisfied Customers: 14154
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I was given some shares in a company when I first started working

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I was given some shares in a company when I first started working for its owner. The shares were not worth anything at the time, as the company was insolvent. I have a document saying I am the beneficial owner of the shares, but the shares were not actually transferred to my name. If the business were to be sold, would I treat the gain in the value of the shares as Capital Gains not income?
Thanks for your question
As this does not appear to have been awarded as part of an employee share scheme (nor one that has been approved by HMRC then the sale of these shares would be liable to capital gains once sold, with the first £11,100 exempt from capital gains tax.
So you are correct in your assumption,
Let me know if I can be of any further assistance with this matter
Customer: replied 2 years ago.

Hi Sam, thank you.

Correct - not a formal share scheme nor approved by HMRC, just a private arrangement.

Does the fact that the shares were not legally transferred to my name (i.e. I have been the beneficial owner only) make any difference, as long I have the documentation to show the date of transfer of beneficial ownership? Thanks.

Thanks for your response
Whilst this is more a legal question - as beneficial ownership gives you full rights with those shares - my view would be that you are eligible for the benefits of the value should those shares been sold.
As the legal definition of a beneficial shareholder and legal shareholder it would appear is the same (if you were a nominee shareholder, then you would not any legal ownership)
I would be inclined to pursue some legal advise to clarify this position in company law, and we do have a UK law forum here on Just Answer with many UK lawyers, whom I am sure could assist further.
Let me know if I can be of any furtehr assistance, or after you have established the legal position any additional advise regarding the tax position on these shares.
It would however, be appreciated, if you could rate the level of service I have provided, in the meantime (or clcik accept) as this ensures Just Answer credit me for my time
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