Illustration - "Geraldine"
You'll learn how to advise on the tax implications when a shareholder exits a company through multiple transactions. This lesson covers two key scenarios: disposing shares to a connected person (with gift relief and business asset disposal relief options) and a company share buyback.
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In this lesson
- 0:00 Geraldine's share disposal scenario
- 1:11 Disposal to connected person Nora
- 2:10 Gift relief and business asset disposal relief options
- 4:17 Company share buyback tax treatment
- 5:16 Ownership condition failure and dividend treatment
- 6:19 Planning opportunity: delaying the buyback
About this lesson
You'll see how connected person rules apply, when capital treatment is available for buybacks, and how to calculate the tax position under different strategies—plus practical planning considerations that balance tax efficiency with commercial reality. This illustration uses a realistic case study involving an unquoted trading company to show how relief eligibility, ownership conditions, and timing affect whether gains are taxed as capital or income. You'll work through the calculations for both the disposal to Nora and the company repurchase, understanding when business asset disposal relief applies and how the five-year ownership test impacts the outcome. The lesson demonstrates that good tax advice considers both the numbers and the client's actual circumstances.
Duration: 7m
Transcript
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