Question: Is there any problem with a director of a AIM company, who owns 8% of the company, making an in specie contribution of his shares to a SIPP? His unrelated co directors own the majority of the equity in the business.
Ian Westwater, James Hay: "In the situation described, an in-specie contribution involving the shares in the AIM company would be possible. The value of the shares would be applied as a net contribution that would be grossed up for basic rate tax relief. Remember, for the contribution to be fully tax relievable the gross contribution must not exceed 100% of earnings. Not all SIPP providers allow in-specie contributions." Andy Leggett, Suffolk Life: "Suffolk Life does not accept in specie contributions. However, we can achieve the same result via a connected party transaction and I answer...
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