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Reducing CGT on free shares

rob316 · 2020-12-02 11:26:12

Hoping to get some help with this. Say John has worked in a company for 10 years, his boss wants to make him director and 20% shareholder. So his boss must dispose of the shares to him and this is chargeable at market value, even if he is receiving nothing for them. Is his boss liable for 33% CGT of the total value of the…

02-12-2020 11:26am

#1

rob316

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Join Date: November 2007

Posts: 18214

Hoping to get some help with this.

Say John has worked in a company for 10 years, his boss wants to make him director and 20% shareholder. So his boss must dispose of the shares to him and this is chargeable at market value, even if he is receiving nothing for them. Is his boss liable for 33% CGT of the total value of the 20% as the shares he is disposing are from when the company was founded? For example lets say the 20% is worth 30k, is the gain classed as 30k as the original shares cost nothing? Seems a mad bill for something your receiving no funds for.

Appreciate any advice on this.

Thanks

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