Last year I have gifted 26 shares to my partner at £1 a share. We wish to transfer ownership of 11 of those shares back to me. My accountants say, that even if these are gifted, we would need to have the company valued to work out applicable capital gains on those shares. I understand the law with respect to capital gains, however I am very confused as to how I go about valuing the company.
How do I value my company?
Do I definitely need to do this?
Are there services that can help me do this?
What documentation / reports do I need to generate and maintain for audit purposes?
Example (not real life figures obviously)
I am the sole director / employee of the company.
The company is an IT contracting business, where I contract software services at a day rate.
I currently have 6 months left on a 12 month contract with no future work in the pipeline.
For argument sake, let's say there is £40,000 made on the contract, and £40,000 left. Last years profit was £90,000, turnover was £105,000, and dividends of around £45,000 were drawn.
I am a bit stuck with this!
How do I value my company?
Do I definitely need to do this?
Are there services that can help me do this?
What documentation / reports do I need to generate and maintain for audit purposes?
Example (not real life figures obviously)
I am the sole director / employee of the company.
The company is an IT contracting business, where I contract software services at a day rate.
I currently have 6 months left on a 12 month contract with no future work in the pipeline.
For argument sake, let's say there is £40,000 made on the contract, and £40,000 left. Last years profit was £90,000, turnover was £105,000, and dividends of around £45,000 were drawn.
I am a bit stuck with this!
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