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Paying Tax On Gifts

Help!

I currently "own" 15% share of a company which I have 2 years to pay off with my dividend payments.

My business partner has offered to transfer £20,000 into my account from his personal account as a "gift".

The deal is I then transfer £15,000 directly back to the company, thus paying off my shares, and keep £5000

This transaction is due to take place next week on my say so and i just wondered if anyone had any advice on this scenario and where I stand from a tax point of view and a legal point of view.

Many thanks

Comments

  • Thanks for your reply.

    The bottom line is other people wish to invest in the company. I have opposed this investment for various reasons but basically to see how much I could gain before I let the investment go through.

    This financial situation has come about for this reason, and if you like, this is a way to make me agree to the investment which is the outcome I was looking for.

    Cheers
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