I've got another question for you legal experts.
If one of my unit trusts is the sole share holder of a company with a total of 1 share, the company owns a property and is classed as a property rich company being it's only asset.
If I decide to issue 1000 shares to another entity, effectively watering down my Unit Trust ownership will this technically incur stamp duty? I'm not selling I'm just issuing stock.
If it doesn't;
In a period of time following this new share issue I sell my 1 share now worth 1/1001 of the company gross value then will the stamp duty be based on the new value of the 1 share only?
Mark
If one of my unit trusts is the sole share holder of a company with a total of 1 share, the company owns a property and is classed as a property rich company being it's only asset.
If I decide to issue 1000 shares to another entity, effectively watering down my Unit Trust ownership will this technically incur stamp duty? I'm not selling I'm just issuing stock.
If it doesn't;
In a period of time following this new share issue I sell my 1 share now worth 1/1001 of the company gross value then will the stamp duty be based on the new value of the 1 share only?
Mark