Mark McLaughlin looks at the employment-related securities provisions in the context of family companies.
The transfer of shares between family members is a relatively common occurrence. The potential tax implications are not normally a primary consideration for the individuals involved, so the family’s tax advisers can only hope that their clients give them the opportunity to consider the tax issues in advance, rather than ‘after the horse has bolted’!
Pass it on…
For example, a gift of shares from a parent to an adult child (e.g. father passing on some of his majority shareholding in the long-established family trading company to his daughter) will be treated as a disposal by father at market value for Capital Gains Tax (CGT) purposes, subject to a possible claim for gift holdover relief (under TCGA
