Adding a shareholder to a limited company

Dear All,

I would appreciate any advice on the following. There is a limited company with a sole director and shareholder. The director wants to give a portion of the company (say 30%) to another person, but does not require any money for this. Just the expertise of that person. The company is trading for few years and has an income of about £200k. Is that something that happens or is it a must for the director to make a valuation of the company's worth and exchange the shares with money.
 
Wouldn't be easier to just to issue more shares - separate class of shares with voting rights?

That way you avoid any CGT issues and can also pay separate rate of dividend per share class.
 
Upvote 0

Ozzy

Founder of UKBF
UKBF Staff
  • Business Listing
    Just to through another option out there, if this other person is an employee and you want them to remain on board...look into Share Options.
     
    Upvote 0

    Adam93

    Free Member
    Jan 18, 2018
    402
    88
    There are numerous tax issues to consider. Firstly, you will need to enlighten us as to who will be receiving the shares and their relationship with the business.

    If they do not pay anything (or pay below market value) and they are not a family member, then the employer relates security rules are likely to apply.
     
    Upvote 0

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