I would like some advice on transferring shares from my wife to me before shutting down my company.
I am planning to shut down my company due to the IR35 changes. I have been working inside IR35 for more than a year now so it doesn't seem to be worthwhile to keep my ltd company running as it costs me to do so. My wife and I have equal shares in the company but she is not employed by the company. I understand that as it stands, if I shut down the company and claim Entrepreneur Relief (or Business Asset Disposal Relief as it's called now), her half won't be eligible for the relief. I was told that it's possible to get her to transfer her shares back to me before the liquidation.
I would like to know if this is indeed allowed? Any possible complications will this cause given it's changed just before the company closure?
Up until Sept 2019, the share split between us was 70:30 in my favour, we changed that to 50:50 March 2020 and backdated on the form to Sept 2019.
I am planning to shut down my company due to the IR35 changes. I have been working inside IR35 for more than a year now so it doesn't seem to be worthwhile to keep my ltd company running as it costs me to do so. My wife and I have equal shares in the company but she is not employed by the company. I understand that as it stands, if I shut down the company and claim Entrepreneur Relief (or Business Asset Disposal Relief as it's called now), her half won't be eligible for the relief. I was told that it's possible to get her to transfer her shares back to me before the liquidation.
I would like to know if this is indeed allowed? Any possible complications will this cause given it's changed just before the company closure?
Up until Sept 2019, the share split between us was 70:30 in my favour, we changed that to 50:50 March 2020 and backdated on the form to Sept 2019.
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