Transfer tax on shares to another shareholder

[elle7]

Hi,

Any help would be great! I am involved with an early stage company with number of shareholders (split 5 ways). I have 20 percent, my sister has another 20, my uncle has a further 20 and the remainder is split between 2 others (not family). We have received a small investment from one of the others but other than that we have not begun trading and have little funds/no profit etc.

We have been speaking to a number of investors who have been put off by the amount of "fingers in the pie".

We need to restructure everything and basically we are hoping to transfer all the family shares to me but need to find out what sort of tax (stamp duty) issues arise with this. No payment will be received by any parties.

Thanks in advance.

 

[dublin66]

Stamp duty will apply at the rate of 1% on the higher of market value or consideration for the purchase of the shares. If the total value of the shares being transferred is less than €1,000 no stamp duty applies. The fact that payment is not being received is not relevant as value of shares being transferred is the amount that stamp duty will be paid on.

I would suggest getting a chartered secretary, or an accountant who is familiar with the process, to do the paperwork for the transfer of the shares. There is a bit of paperwork between meetings/resolutions etc to record the transfer of the shares and issue new share certs etc. A solicitor could also do this but you might be charged a lot for very little.

If the potential investor is doing any amount of due diligence they will look at the ownership of the company