Adding a foreign shareholder

[NowPermOutsideUK]

For someone who has 300k retained profited then this is the value of the company. Giving away shares would be based on this 300k regained profits. Does not matter that the company was a £100 ltd

There is no tax for the recipient on receiving a gift assuming receiver is in Uk. And this is hmrc view rather then what happens in France tax authority

[NotAllThere]

For someone who has 300k retained profited then this is the value of the company.

Wrong. Projected earnings may be included in it. 300K in the company means a 300k baseline. It's worth at least that.

[NowPermOutsideUK]

Wrong. Projected earnings may be included in it. 300K in the company means a 300k baseline. It's worth at least that.

Totally agreed. At least that amount was my point. Definitely not zero tax on the person giving the shares away because of cgt is my point

[LondonManc]

Oh man, so hard to just give someone money without such an unfair tax!

Google might help: How UK investments are taxed in France | Blevins Franks Advice

Also, consider ownership of your firm and UK contracting - you have to be in full control (51% or above) of your limited company, or at least you do based on every contract I've ever undertaken.

Your accountant my be able to offer a better alternative - take the money out via UK tax hit for yourself then do something to give it to the other person, e.g. bitcoin account, etc.

[kazh]

thanks for all the help!

SO far:

1) Find out market value for the shares and sell them to my friend at this rate or more
2) Don't give up more than 49%

okay, sounds simple enough

[WTFH]

thanks for all the help!

SO far:

1) Find out market value for the shares and sell them to my friend at this rate or more
2) Don't give up more than 49%

okay, sounds simple enough

The simplest way to value a business is take the annual turnover and multiply by 3.

[northernladuk]

I believe to get the very best advice befitting the OP's question we need this in General.

[TheCyclingProgrammer]

But that’s based on the capital gain of the asset to the original owner surely?

Where as the recipient of the gift will still have tax to pay if gifted. If sold then the recipient now simply owns the shares and will be subject to tax on any income or sale in the future.

The original owner of the shares is liable to CGT when they dispose of them (by giving them away).

The new owner of the gifted shares is only liable to CGT when they subsequently dispose of them, subject to whatever the CGT rules are where they live.

[TheCyclingProgrammer]

For someone who has 300k retained profited then this is the value of the company.

Company valuation isn't quite *that* simple, even for a "PSC". I'd recommend you have a proper valuation drawn up.

[northernladuk]

Company valuation isn't quite *that* simple, even for a "PSC". I'd recommend you have a proper valuation drawn up.

But you can imagine that a share that will bring in £40+ k over the next year isn't going to be cheap!!