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Cast off, number one

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13 November 2012

Issue: 4379 / Categories: Forum & Feedback , Income Tax

A mother and father own 50% of a trading company while their sons own 35% and 15%. The son owning 35% wishes to leave the business and the parents are willing to purchase his shares. They also wish to increase the shareholding of their other son

My clients are a mother (M) and father (F) who own 50% of a trading company; number one son (X) owns 35% and number two son (Y) owns 15%.

X wishes to leave the company and the parents have the money to purchase his shareholding.

They also wish to give Y more shares in the business.

The trading company has been owned for more than two years so all shareholders currently qualify for 100% business property relief (BPR) on their shareholdings.

However if parents M and F purchase X’s shares and then make a transfer to Y does that transfer still qualify for business property relief?

My question is how does one identify which shares have been transferred to Y?

Are they the newly purchased shares or are they the parents’ original shares?

I should be grateful for any clarification or advice that readers might be able...

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Cast off, number one

© Copyright LexisNexis 2024. All rights reserved.

13 November 2012

A mother and father own 50% of a trading company while their sons own 35% and 15%. The son owning 35% wishes to leave the business and the parents are willing to purchase his shares. They also wish to increase the shareholding of their other son

My clients are a mother (M) and father (F) who own 50% of a trading company; number one son (X) owns 35% and number two son (Y) owns 15%.

X wishes to leave the company and the parents have the money to purchase his shareholding.

They also wish to give Y more shares in the business.

The trading company has been owned for more than two years so all shareholders currently qualify for 100% business property relief (BPR) on their shareholdings.

However if parents M and F purchase X’s shares and then make a transfer to Y does that transfer still qualify for business property relief?

My question is how does one identify which shares have been transferred to Y?

Are they the newly purchased shares or are they the parents’ original shares?

I should be grateful for any clarification or advice that readers might be able...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Issue:

4379

Categories: Forum & Feedback [1] , Income Tax [2]

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