Issue shares on incorporation under S162 to children? - USERNAME: RajB - 06/07/2016

Tax Question:

I was considering incorporating my rental trade business using s162 incorp relief, this is expensive exercise given prof and bank fees. Question is, should i decide to go ahead, can I issue shares to my minor children on incorp without tax cost?

Answer:

No. The legislation for S162 states "...and the business is so transferred wholly or partly in exchange for shares issued by the company to the person transferring the business...". Therefore the shares would need to be issued on incorporation to you.

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