Share transfer as gift to the directors

This discussion explores the process of transferring shares as a gift from a holding company to its directors, particularly when merging two private limited companies. The main concern is to avoid capital gains tax for the transferor and understand the relevant sections under both company and income tax acts. It highlights that while Section 47 of the Income Tax Act generally treats gift transfers of capital assets as not a 'transfer' for capital gains purposes, Section 56 may impose tax on the recipient if the shares are received without or for inadequate consideration exceeding £50,000. Checking the company's Articles of Association for any transfer restrictions is also crucial.