Hi,
I will be seeking professional advice but I just wanted to try something here first. Let's say I was developing a product and suddenly someone thought it was a good idea and decided to invest.
Let's say a new company was required to house the new product and the new investor cash. I would have shares in the new company. The new company would have a valuation based on the new money.
Do I realise a capital gain on the new (notional) value of my shares in the new company immediately or only if I actually cashed out ?
I will be seeking professional advice but I just wanted to try something here first. Let's say I was developing a product and suddenly someone thought it was a good idea and decided to invest.
Let's say a new company was required to house the new product and the new investor cash. I would have shares in the new company. The new company would have a valuation based on the new money.
Do I realise a capital gain on the new (notional) value of my shares in the new company immediately or only if I actually cashed out ?