Close company - transfer of shares

Poodle

Hi,

The scenario: husband and wife ltd company each with one £1 osc.

Hubby wants to buy out wife.

So he is going to pay her an amount not exceeding £50k for her £1 share.

There will be no CGT.

CH will be advised of share transfer.

Stupid question really but I just cannot get my head around the bookkeeping, I am having one of those days is it really as simple as £50k into hubbies bank account, nothing to do with the company and then nothing in the actual company accounts since the OSC is already showing as £2.00?

Monsoon

Poodle wrote: »

Stupid question really but I just cannot get my head around the bookkeeping, I am having one of those days is it really as simple as £50k into hubbies bank account, nothing to do with the company and then nothing in the actual company accounts since the OSC is already showing as £2.00?

Yes. The shares are personal investments.
My noodle is already baked this morning so don't rely on my answer....!!

burg

Agree if the husband is buying the shares from the wife then the transaction has nothing to do with the company.

Poodle

Thank you guys

If I was not going grey i would say that today is really blonde!!

RAS

Not sure why no CGT on sale of share?

deanshepherd

RAS wrote: »

Not sure why no CGT on sale of share?

Husband and wife transfers are 'nil gain nil loss' for CGT.