The client is a South West manufacturing company owned by three shareholders, the father, his wife and his son. The son had taken over the day-to-day management of the business and the father and mother wanted to pass on shares to their son whilst ensuring they could still enjoy dividends. The shareholders also wanted to bring in the son’s wife as a new shareholder, as she had an increasing role within the business. We provided:
- Review of shareholders’ agreement and recommendation to firm of solicitors for the required revisions.
- Tax value of company shares – agreed with HMRC as a post transaction valuation
- Appropriate board minutes, resolutions and company house forms to effect transfer of shares from father to son and mother to son
- Competition of s165 TGCA claim to rollover gain from father to son and mother to son, on disposal by father and mother –ensuring no capital gains tax due on the transactions
- Appropriate board minutes, resolutions and Company House forms for transfer from son to his wife – ensuing no tax due as exempt transfer to spouse
- Appropriate board minutes, resolutions and Company House forms to create four separate class of dividend shares to provide complete flexibility on amount of dividends paid to father, mother, son and daughter-in-law.
The advice and restructuring allowed for value of over £800,000 to pass down a generation tax free and for income tax/NIC savings of over £30,000 per year to be made.