Gifted shares in company I work in

N

New-Red

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Hi,

A number of years ago my Father retired and gave me 75% shares in his private limited company.
I had been working for the company for about 7 years prior to this happening. And I've been running the company for about 8 years since then.

However, he recently mentioned to me that due to his gifting me the shares back then, it will probably affect my inheritance one day (in terms of the shares being liable for gift tax etc...)

But at the time I could have sworn that I looked into this end of things and was told there was some "business property relief" rule that cancelled this issue out.

However, after googling this for a few hours today I'm still at a loss to what the situation is.

Does anyone know how this works? Thanks in advance.
 
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T McGibney said:
This explains how Business Relief works for CAT purposes but frankly you'd be better off asking your company's accountants.
Click to expand...

Great, thanks for that. Much appreciated.
My reading of it is that I meet all the criteria laid out in 12.4 so I qualify for relief but looks like I still am liable for 10% of the value of the shares at the time..... Or at least that's the way I'm interpreting it.

I contacted our accountants alright but they generally take an eternity to ring back so I could be retired by then :)
 
What was the value of the shares?

For example, €3.1m would mean €310k (assuming full relief), and result in no leftover threshold.

If the numbers are big, surely it warrants professional advice?
 
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Cheers! No it's nothing in that bracket (unfortunately really). Roughly one sixth of those figures. Yes I've contacted accountants a couple of times but still waiting for their response.
 
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