Selling business shares and CGT

[Vixpy1]

Director A sells a small number of shares to Director B , he has held the shares for 7 years since he founded the company.

lets say the consideration is 6K, stamp duty has been registered and paid.

How does person A work out the capital gain? The .gov pages only refer to the purchase price of an asset, but there is was no purchase.

Lets assume that the persons CGT allowance for the year is used, and he has no losses left to offset the gain.

[KevinCorvetteC6]

What was paid into the company initially as value for the issued shares? Probably face value? This may be a starting point?

[anonymous-user]

If nil was paid surely the gain is 6K?

It is possible the shares may qualify for entrepreneur's relief.

[Vixpy1]

KevinCorvetteC6 said:

What was paid into the company initially as value for the issued shares? Probably face value? This may be a starting point?

Issued Share capital was 100 shares of £1 each, so I guess thats my answer.

[trickywoo]

An accountants / tax specialist fee may well pay for itself.

I recently bought out my co-director and it was quite involved making sure both myself and they did not pay more tax than necessary.

Don't forget the other end of it in that if director B pays for it themselves it'll effectively already have been taxed at director B's income tax percentage. It is my understanding this doesn't have to to be the case.

Obviously the importance of doing it right increases with the amounts involved and £6k you may well just pay up without looking into it further.