Capital Gains Tax for exiting shareholders

prewittevan · #1 (**permalink**) 07-24-2012, 03:01 AM

hey friends,
kindly written my column about "Capital gains Tax for exiting shareholders"
it may be possible to arrange matters so that an option holder can qualify for Entrepreneurs' Relief in respect of his option shares, even though they only become exercisable at the point of sale.
There are no such provisions for Entrepreneurs Relief and therefore both option holders and proprietors will need to consider an early exercise, to maximise the incentive and enable managers to enjoy minimum GT rate.
this can be a problem where a proprietor wants their spouse or children to hold shares that will qualify for Entrepreneurs' Relief, but those relatives are not employees and one party or the other does not necessarily want to be a director of the main company. thanks for check my column and kindly comment on it.

bakerjohn795 · #2 (**permalink**) 10-08-2013, 11:35 PM

Quote:

Originally Posted by prewittevan

hey friends,
kindly written my column about "Capital gains Tax for exiting shareholders"
it may be possible to arrange matters so that an option holder can qualify for Entrepreneurs' Relief in respect of his option shares, even though they only become exercisable at the point of sale.
There are no such provisions for Entrepreneurs Relief and therefore both option holders and proprietors will need to consider an early exercise, to maximise the incentive and enable managers to enjoy minimum GT rate.
this can be a problem where a proprietor wants their spouse or children to hold shares that will qualify for Entrepreneurs' Relief, but those relatives are not employees and one party or the other does not necessarily want to be a director of the main company. thanks for check my column and kindly comment on it.

NTEP Commercial Scales

bakerjohn795 · #3 (**permalink**) 10-08-2013, 11:36 PM

Quote:

Originally Posted by prewittevan

hey friends,
kindly written my column about "Capital gains Tax for exiting shareholders"
it may be possible to arrange matters so that an option holder can qualify for Entrepreneurs' Relief in respect of his option shares, even though they only become exercisable at the point of sale.
There are no such provisions for Entrepreneurs Relief and therefore both option holders and proprietors will need to consider an early exercise, to maximise the incentive and enable managers to enjoy minimum GT rate.
this can be a problem where a proprietor wants their spouse or children to hold shares that will qualify for Entrepreneurs' Relief, but those relatives are not employees and one party or the other does not necessarily want to be a director of the main company. thanks for check my column and kindly comment on it.

Entrepreneurs' Relief, but those relatives are not employees and one party or the other does not necessarily want to be a director of the main company. thanks for check my column and kindly comment on it.

NTEP Commercial Scales

carithomas5141 · #4 (**permalink**) 10-11-2013, 02:32 AM

Thanks for sharing with the information about entrepreneurs and shre holding. I am surely going to read about it.