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Clients ask about Capital Gains Tax liabilities under the new rules in FA 2015

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  • Publish date: 01 June 2015
  • Archived on: 01 June 2016

Q: Trading company XY ltd is owned by family members: Father 52%, Son A , son B and daughter C all 16%. Each of the shareholders owns 25% of the property used for the company’s trade, rent-free. On 31/1/2015 it is agreed, because of a dispute as to the running of the company, that A will leave, and sell his shares back to the company. At the same time it is agreed that the remaining shareholders will transfer a quarter of their shares into a family trust. The Purchase of Own shares gets capital clearance and the contract is signed by A on 30/4/15. B transfers his shares to trust 1/3/15, C and Father transfers theirs 20/3/15. Contract for sale of property is exchanged 31/3/15. Clients ask about CGT liabilities under the new rules in FA 2015.