Alphabet Shares: Risks and Opportunities

OBJECTIVES

The use of multiple classes of shares (commonly referred to as alphabet shares) is common in the Owner Managed Business (OMB) sector, particularly where dividends are desired to be payable at different rates between shareholders. 

This course will examine the tax implications of implementing alphabet shares and the risks clients must be aware of, if done for the wrong reasons. It will also examine other scenarios in which alphabet shares can be used for tax efficient purposes, such as the use of growth and freezer shares in estate planning.

KEY TOPICS

• Share reorganisations - what are they and ensuring no CGT charge arises on the implementation of alphabet shares
• Employment related securities implications
• Dividends or earnings? - Examining the validity of common scenarios
• Value shifting provisions
• Companies Act issues to be aware of
• HMRC reporting requirements

WHO SHOULD ATTEND

This session is aimed at all advisors of owner-managed businesses who deal with general business and shareholder issues