Robert Smith

I'm a bit puzzled about my CGT exposure should I sell my company. Background is I started a company about 10yrs ago..initially, I was the sole shareholder ...£100 share captial (£100 shares in issue) A few years later, I split the shares 51%/49% in my favour. I split from my wife in 2019 Divorce was finalised by consent order in Autumn 2023 .. the Judge accepted the expert's company valuation of £xxxK (for simplicity lets say £200k) & the judge carved up the finances based on this company valuation. I acquired her shares (and she got the dosh)...therefore I now own 100% of the company. my confusion is in relation to the valuation of her 49% of the shareholding which I acquired as part of the divorce settlement...and for which she was paid. So is CGT exposure for the 49% transferred to me based on the £200k valuation as agreed by the Judge ...or in other words have I essentially purchased/acquired her 49 shares at 49% of £200k? Therefore her shares were valued at £98,000 ...meaning for CGT they are valued at an acquisition price to me of £2,000 per share? My fear is that her 49% will be deemed by HMRC to be acquired by me at £1 (meaning I've essentially paid her £2,000 for each of her 49 shares share, but HMRC will say my acquisition value is £1 per share (i.e. from when the company was founded) Many thanks in advance.