Unquoted Share Purchase
Mark had worked for a firm of IFAs for 10 years. 3 years ago he was offered the chance to become a Director and buy equity in the firm from a retiring Director.
Mark bought a 10% shareholding for £80,000 and funded this with a loan from his bank.
Due to changes in legislation, Mark decided that he could use a SIPP to purchase his shares back from himself. Mark had existing personal pension plans with Standard Life and Scottish Equitable amounting to £150,000. He approached both companies to see if they could deal with his request. Unfortunately neither company would allow such a transaction so Mark approached Montpelier.
Montpelier asked Mark to obtain an independent valuation, which now showed £100,000. Mark transferred his existing funds to a new SIPP with Montpelier. The SIPP then purchased the shares from Mark who was not only able to repay the borrowing from the bank but there was enough left to refurbish his kitchen.
Mark is confident in the long term prospects of his company and felt that this was a good way to diversify the funds that he had built up.
Mark bought a 10% shareholding for £80,000 and funded this with a loan from his bank.
Due to changes in legislation, Mark decided that he could use a SIPP to purchase his shares back from himself. Mark had existing personal pension plans with Standard Life and Scottish Equitable amounting to £150,000. He approached both companies to see if they could deal with his request. Unfortunately neither company would allow such a transaction so Mark approached Montpelier.
Montpelier asked Mark to obtain an independent valuation, which now showed £100,000. Mark transferred his existing funds to a new SIPP with Montpelier. The SIPP then purchased the shares from Mark who was not only able to repay the borrowing from the bank but there was enough left to refurbish his kitchen.
Mark is confident in the long term prospects of his company and felt that this was a good way to diversify the funds that he had built up.
