Transfering Ltd Co. shares.

[Remster500]

Can anyone advise procedure for tranfer of 1/2 of my Ltd company shareholding to my wife? It is my Ltd company and I am 75% shareholder with the other 25% held by a family trust. The main reason for transfer is so I can pay her a dividend and reduce my tax liability.

[crossle]

Speak to your accountant - that's what you pay them for.

I did, and got sound advice on the matter, and all its implications.

Shareholding was changed to minimise both tax liabilities. Took five minutes.

[therealpigdog]

Remster500 said:

Can anyone advise procedure for tranfer of 1/2 of my Ltd company shareholding to my wife? It is my Ltd company and I am 75% shareholder with the other 25% held by a family trust. The main reason for transfer is so I can pay her a dividend and reduce my tax liability.

Depending on the articles of association of the company from a legal perspective it is quite simple. All you will need to do is fill in a stock transfer form (I can e-mail you a pdf or your accountant should be able to provide) and then write up the statutory books. Your tax advisor should give you advice regarding valuation of the transfer.

If there is a pre-emption right in the articles (saying shares must be offered to existing shareholders first) then you will need the trustees to waive that right (can be done by a simple letter).

Overall this isn't a difficult job, and your tax advisors should be able to deal without the need for solicitors (unless you have a particularly complex set of articles).


Being a professional cynic, you should perhaps consider worst-case scenarios should you and your wife ever split or if one of you died. Consider a very simple shareholders' agreement whereby the shares would be transferred back to you, and/or obligations on her to vote as you direct. May seem like overkill now, but I have clients who wished they'd done this. Also, might be worth updating your wills.