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Transferring a business

F

Fusermarucs

New Member
Good afternoon all - I’m after a bit of advice please!
I’m currently employed as a director of a very small limited company - 5 staff. The current owner (who is no longer a director since he retired) now wants to transfer full ownership of 100 shares of the company to me. The company is valued at around £50k.

As far as I can see, this ‘gift’ would cost me £20k in tax due to me receiving it as a result of my employment - as well as my loss of redundancy rights

Equally, if I offer to buy the shares for £100 I assume HMRC would come knocking demanding tax as I’ve bought at below market value.
The owner really wants the business to carry on, as do I, but there is very little spare cash at either end to pay for any tax bill.

is there any other way to do this that we’ve missed please??
Thanks in advance.
 
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