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Capital Gains Tax Exempt Share Transfers
CGT EXEMPT SHARE TRANSFERS
EMPLOYEE SHAREHOLDERS – LOSS OF RIGHTS
Employees who are shareholders can receive between £2,000.00 and £50,000.00 worth of shares in an employer company free of Capital Gains Tax. An exemption applies when the employee, who is a shareholder, surrenders his/her statutory rights such as unfair dismissal and statutory redundancy.
The recent change is likely to be used as a tax-efficient way of transferring shares to senior staff. It may well be, however, that the value of the rights exceed the value of the shares transferred and so any participation in such a scheme needs to be looked at and advised upon in detail.