Buying Shares in Employer
Buying Shares in Employer
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Discussion

Big_Dan

Original Poster:

513 posts

281 months

Thursday 17th June 2021
quotequote all
I've been offered the opportunity to buy some shares in my Employer. It's a limited Co, I don't believe these shares would have voting rights / dividends etc

We already have an EMI scheme, which I am a part of, and this is outside of that

Understanding the risk of investing my money in my employer (in that I loose my investment and my PAYE job if it goes pop) what's the most cost effective (tax efficient) was of handing them some cash and getting the shares?

I considered buying them via my own Ltd co I have some cash in, but that seemed fraught with danger on a previous thread from 2010! Is this still the case?

Clearly I am gambling on buying them cheap and getting the money when the Co is sold to a competitor. Or something. Profits would go into my pension (subject to limits etc)

sociopath

3,433 posts

95 months

Thursday 17th June 2021
quotequote all
YMMV but having gone through the rigmarole of selling a minority stake in a non public company when my mother died, I'd stick my money somewhere else.

You don't get any rights and they'll bend you over and tear you a new one you when you try to sell.


aspender

1,405 posts

294 months

Thursday 17th June 2021
quotequote all
Too fraught with risk and uncertainty. Your holding will no doubt get diluted down over time and what’s the real likelihood of a crystallisation/exit event? Simpler and more reliable ways to invest your money.

Big_Dan

Original Poster:

513 posts

281 months

Friday 18th June 2021
quotequote all
Thanks all - only I can speculate whether it's a gamble worth taking (I believe it is)

What's the most cost effective (tax efficient) was of handing them some cash and getting the shares?