Company Director

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  • #45393
    a_carney
    Participant

      

    I have a couple 82 and 83 years old who are directors and sole owners of a limited company (per tracker report). The net worth of the Co and the shareholders funds  on the tracker report is £78000.

     

    We have been advised by their accountant that their joint income for the past 3 years was £5300 giving £1767 per year.

     

    They do not actively work in the company but rent it out to their son who works there, the above income is rent received.

     

    Given their age and the fact that they are not actively working in the company

     

    1. should I be counting the income?

    2. should I be counting their capital?

    #127700
    Andy Thurman
    Keymaster

    On the facts as stated, they have “shares” worth £39k each – capital (minus 10% assumed selling costs).

    #127762
    peterdelamothe
    Keymaster

    You need to take into account what a willing buyer would pay. It might be higher than this and you also have the discretion to ignore the capital value in some circumstances (but not the assets if they are no longer working for the company).

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