Cash from company takeover ?

longforgotten

My husband has shares bought about nine years ago through a company SAYE share option scheme. This company maybe taken over by a company who will pay cash for the shares as it is not a listed company. If he receives cash for these shares, efectively selling them all at once. there will be a capital gain high enough for CGT even after taper relief.

Does having bought the shares through a share option scheme make any difference in the CGT calculation? Only thing I can think of at the mo is to transfer some shares to me to use up my CGT allowance.

Grateful for any advice

longforgotten

oops sorry, posted this in wrong place.

longforgotten

thanks for moving by post to this board Crabman

digerati

If these are share in an unlisted company, you might not be able to freely transfer any shares to a spouse. However most listed companies don't have restrictions on transfers (provided the shares are fully vested).

You can download and print a Stock Transfer Form (at the bottom of the page), have your OH fill in the details and send it off to the registrar who will issue new shares in your name.

Stamp Duty

As a general rule if no consideration or money changes hands, then the transaction is not liable for stamp duty. Gifts within a family come under category L and should be so noted in the stamp duty declaration on the reverse of the Stock Transfer Form.

dipsomaniac

he needs to speak to his employer as this should have been discussed. can the shares be rolled over (receive shares to the value of existing shares in the new company)?

if not, you should look at transfering share to you. if he hasn't used up his isa allowance you could also enquire if it is possible to transfer some of the shares into an isa - which is a cgt free enviroment.

this happened on a large scale when walmart took over asda. i don't know the outcome but walmart was talking about compensating employees forced to pay cgt.

longforgotten

Thanks for the replies

My husband no longer works for the company.

He worked for Britannic which is now Resolution.

I think we'll go ahead and transfer shares into joint names just in case they're taken over and it's a cash deal. It would be no bad thing to have them in joint names anyway. Will look into the transfer into ISA option too.

Who knows in the end they may still end up being taken over or merged with a company that is already listed rather than Pearl