Share Release Exit Strategy

Presently shares within your Company can present an issue if the company was to be sold in the future.

Capital Gains Tax would usually be charged to the shareholder upon sale. The current full rate is 28%. Entrepreneur’s relief may be available up to the first £10 million for each shareholder. This is dependent on any previous disposals since 6th April 2008 and the trading status of the company. The latter can be affected by the nature of assets held by the company.

Whilst the shares may qualify under current Business Property Relief and so be free from IHT, when sold these shares are replaced by cash which will be included in an individual’s estate for IHT purposes and thus taxed at 40%.

Taking appropriate advice from our unique advisers can maximise the tax efficiency of how you exit and take your funds on the sale of your shares using a Share Release Trust, shares enter a separate trust, The Share Release Trust.

This allows:

  • The shares to be sold free of CGT (Shareholder retains his full Entrepreneurs Relief to be used at a later date maybe).
  • Reinvestment can be made Capital Gains Tax free.
  • Income returns are Income Tax free.
  • The share sales proceeds fall outside the estate and so no future IHT liability.
  • The benefit of the tax free environment passes down the generations as the structure is still retained.

Please not that the Financial Conduct Authority do not do not regulate some forms of Trust products & services. These services are provided by our sister company Countrywide Tax & Trust Corporation Ltd