From: "Socrates" 
Newsgroups: uk.legal uk.finance
Subject: Re: Transfer of company shares on death
Date: Sun, 5 Sep 2004 22:10:24 +0000 (UTC)

"john boyle"  wrote in message

> and if there were 1 million shares issued, they would be worth £1
each. This could have occurred if there had been a share split.

Correct - but a most unlikley scenario in the real world - I can't think
what the size of the Company's Share Register would be with 1 million shares
issued!

There would be no earthly reason to divide up a private limited company's
shares into 1 million shares, and for most practical purposes 100 shares is
normally sufficient for dividing up between family members.

The time to divide up company shares is at the beginning of trading before
they have acquired any value - once trading begins and the shares are deemed
to have acquired a value, then it is not possible simply to transfer them to
others or to a trust without ultimately avoiding capital gains tax in some
form or other.

The Inland Revenue have come up with a few schemes involving reliefs and
deferred tax, but these are just tweaks for patching up a haphazard regime
for collecting tax.

A good accountant would be the best person to advise.

Yours faithfully,

John Aidiniantz
www.homepage-link.to/justice