A recent tax case reminds us of the need to keep good company records. In this case the taxpayer had not got good documentation regarding a share issue. The lack of evidence of new shares being issued proved very costly for the taxpayer in terms of later tax relief being denied by HMRC.
The most important documentation when dealing with shares is the Register of Members. This is a list of shareholders, with addresses, showing numbers of shares bought, sold and held. Additional documentation including share certificates and correctly updating Companies House are also important, but it is the Register of Members that actually defines whether and when share issues and transfers have taken place.
Our Company Secretarial service priced from £10+VAT per month includes maintaining your Register of Members. If you are making any new issue of shares, or any transfers, it is vital the Register of Members is updated.
As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us.