GARBAGE JOBS

Duty payable on share transfers is currently 0.5%. Duty payable on the transfer of certain assets including freehold or leasehold property can currently go up to 4%.

Capital Gains Tax – Share Sale By Individual Shareholders.

1. The issue to bear in mind here is that the seller receives the consideration directly for her or his shares.
2. For sellers the biggest tax benefit they have is likely to be the dramatic effect of taper relief. This can reduce capital gains tax liability to under 25% after two years ownership of a “qualifying asset”, the most important of these being certain shareholdings in unquoted companies, and assets owned by an individual and used in the individuals company (provided the shares in that company meet certain restricted ownership requirements). Corporation Tax – Asset Sale By Company.

There are two tax points where the company sells its assets. Firstly the company may suffer a capital gains tax charge when disposing of the relevant asset to the buyer. Secondly the remaining consideration held the company needs to get to the shareholders. If the net proceeds are distributed by winding up the company the shareholders are treated as disposing of their shares for capital gains tax purposes. If the proceeds are distributed as a dividend involves further tax liability both for the company and the individual receiving the dividend. Financial Assistance.

A company may not give direct or indirect financial assistance to a person acquiring the shares in that company. Typically this arises where a buyer wants to acquire the shares in a company and the buyer finances the acquisition by arranging for the company to charge its assets to a bank fund the share purchase. There is a mechanism for allowing a company to give this assistance but it can be costly and time consuming.

The rules on financial assistance do not apply to asset sales.