ISA with private shares

moxystu

Hi,

My company has offered me a 5% stake in the buisness with the idea of the company being sold outright within 5 - 10 years.

What I was wondering was: Is it possible to wrap these shares in some sort of ISA so that when (if) the company is bought out, I wouldn't have to pay tax on the profit of the sale. They have offered them to me for a nominal price of £1 per share (10 shares) and as this is a private company, no previous valuation has ever been done on the company.

Any advice is appreciated.

moxystu

Anyone any ideas?

Bazn

as far as i know, only shares listed on a recognised stock exchange are eligible for inclusion in an ISA...

Ian_W

Bazn is right - From Money Supermarket and I've highlighted the relevant bit:
Stocks & Shares Component
This component allows individuals to invest in collective shares, for example, Unit Trusts, Investment Unit Trusts, shares listed on a recognised stock exchange, bonds and gilts and Life Assurance.

That is an Inland Revenue requirement and a large range of stock exchanges qualify but if the co is private and not listed anywhere then no ISA.

They have offered them to me for a nominal price of £1 per share (10 shares) and as this is a private company, no previous valuation has ever been done on the company.

Out of interest how do you know whether they're worth £1? Might be worth a Fiver each or 50p.