Best Way To Hold Private Company Shares

wannabeinvestor

I recently brought an investor and a private company together in return for a few % of the company. I want to transfer these shares to me and want to know if I should do this in my name, a limited company I set up to be an IT contractor my wife's name or through some other way, to tax efficiently benefit form the sale of the company down the line. Can anyone help or suggest a resource...Cheers.

Blah99

wannabeinvestor wrote: »

I recently brought an investor and a private company together in return for a few % of the company. I want to transfer these shares to me and want to know if I should do this in my name, a limited company I set up to be an IT contractor my wife's name or through some other way, to tax efficiently benefit form the sale of the company down the line. Can anyone help or suggest a resource...Cheers.

There's little day to day difference between private company and public company shares (apart from, of course, the latter is listed). I'd suggest you transfer the shares to you, unless you're expecting large dividends, you're a higher rate taxpayer and your wife is a lower/non taxpayer, in which case transfer to her. Don't put them into a limited company. One question is why you have to transfer them at all - surely the board of the company issued you directly with shares, so why would they be in someone else's name?

You might also want to look into venture capital tax and taper relief, I'm not sure exactly what you might be eligible for but it may help you.