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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have agreed to sell my shares in my company to X Ltd for

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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

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.
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