Assets gifted to employees or shareholder family

Produced by Tolley in association with

Corporation Tax

Guidance

This note provides guidance on the corporate capital gains rules that apply where a company gifts assets either to employees or to shareholders (or members of their family). It also briefly considers other tax aspects of such gifts, including corporation tax deductibility and income tax. For an overview of corporate capital gains, see the Corporate capital gains ― overview guidance note and for transactions with connected parties generally, see the Connected party disposals guidance note.

Why do companies give away assets?

Whilst large companies do not generally give away their assets (other than perhaps to registered charities), it is quite common for smaller companies (especially close companies) to transfer assets to employees or shareholders for no consideration or for consideration less than market value. This can be for a variety of reasons, but often is in recognition of employees providing extra services not covered by their usual remuneration or in order to gift a lump sum to younger generations out of the assets of a family company.

The

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Jackie Barker

Tax Partner at Wells Associates , Corporate Tax, OMB, Employment Tax, Personal Tax, VAT, IHT Trusts and Estates, Accounting

I have worked in tax since becoming an associate of the CIOT in 2004, having previously qualified as a member of ACCA. As tax partner with Wells Associates I advise on all aspects of direct taxation including personal and corporate planning. We work with a wide range of individuals and owner-managed businesses offering guidance and support at all stages, from assisting with compliance matters through to advising on more complex strategic matters and providing tax efficient solutions.

Popular Articles

Trusts and Inheritance Tax

Payments to trust beneficiaries

Payments to trust beneficiariesThis guidance note considers the trustees powers to make payments and whether the payment made is income or capital.This guidance note is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not

14 Jul 2020 12:52 | Produced by Tolley Read more

Corporation Tax

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more

Personal Tax

Self assessment ― estimates and provisional figures

Self assessment ― estimates and provisional figuresIf the taxpayer does not have sufficient information to enable them to complete the tax return in the time allowed, they should include either a best estimate or a provisional figure. The taxpayer should not either leave a box blank or enter

14 Jul 2020 13:37 | Produced by Tolley Read more

��˾��ҹ��