Tax implications In Shares Acquisition
Shares: Direct Receipt of Consideration If the company is owned by individual shareholders, the proceeds from the sale of the shares will be sent to them directly. An individual selling shares will have relatively simple tax repercussions. For CGT purposes, shares are chargeable assets, thus any sale of a share that results in a gain will result in (subject to exclusions) a tax charge for a particular shareholder. If the seller is eligible for reliefs, they could be able to exclude all or part of the gain. When shares are sold, the selling firm receives the proceeds directly if the company is controlled by another company. However, if the seller is selling a sizable interest in a trading firm, any capital gain realised by the selling company is probably free from corporation tax. Where corporate entities own ownership of the target company's shares, the availability of this exemption will undoubtedly be a crucial factor. It is important to remember that the exemption underwent changes in 2017. The changes, which are subject to anti-avoidance regulations, include a broadening of the exemption's application and a loosening of several standards for disposals made on or after 1 April 2017.
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