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CGT mitigation query!

If I obtain shares in a brand new, non-listed, start-up company, total value

200; then after 12 months trading I can sell these shares for, say, 30,000; is there any way of mitigating the CGT hit by doing something clever with the shares at the outset? I'm thinking along the lines of putting them into an ISA wrapper or something (but I know isn't possible because the company isn't listed).

Please don't tell me that I need to consult an accountant about this; I did, and he came up with nothing. However, he's just screwed up by failing to advise me on another matter, and I'd like to know whether he's definitely got this one right. In actual fact, it's too late to do anything 'at the outset' anyway since I'm about to sell the shares (and will be paying CGT); but I want to know if I need to change my accountant!

Dave

Reply to
Dave P
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Just split the holding with your wife and sell half the shares this year and the other half next. That way you get four lots of CGT annual exemptions.

Reply to
Ronald Raygun

What wife??!

Actually I do have one(!), and splitting the holding between us is already on the agenda, which does help a lot. However unfortunately it's a condition of the sale that the whole shareholding is sold at once - bummer (especially as it's happening just a few weeks into the tax year).

So do you reckon there was anything else we could have done 12 months ago, though?

Thanks Dave

Reply to
Dave P

In article , Dave P writes

From what you say I suspect that it 'may' qualify for business asset taper relief (BATR)

If so and you have held the shares for a year then you should be entitled to 50% taper relief.

With transferring some to the spouse and two lots of annual exemption as well might this wipe out the gain altogether? You will need to go through the computations carefully.

As to clever things that could have been done initially, conceivably the shares could have been acquired by a pension fund and thus the gain would be CGT free, although the annuity would ultimately be taxed.

Reply to
Jon Griffey

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