Nominal value meaning

FTT holds payments to employees under tax avoidance scheme were taxable earnings despite purported repayment obligation (GW Martin & Co Limited & another v HMRC) GW Martin & Co Ltd & another v The Commissioners for HMRC [2025] UKFTT 1147 (TC). The appellants transferred sums to employees on the basis that those employees would subscribe for a newly created class of shares in the appellants (the Shares). These Shares conferred no voting power, no dividend entitlement, and only very limited rights in the event of a winding up. The structure was intended to sidestep PAYE and NICs liabilities while also delivering a corporation tax deduction. The sums advanced were not loans; rather, they were conditional on staff taking up Shares with a nominal value mirroring the payments. Only 1% of that nominal amount was paid up, leaving the remaining 99% uncalled, so the cash flowed to employees while the issued share capital largely remained unpaid...

In recent years, the phenomenon of older clients who are asset-rich but cash-poor has become increasingly common. Typically, their wealth is locked in a home that has climbed markedly in value over time, while income from pensions and savings has stayed largely static, if not fallen in real terms. Unsurprisingly, many wish to convert that fixed, generally unrealisable wealth into cash without having to sell their home. Equity release basics Equity release may offer a solution. Funds released can be taken as a lump sum, regular income, or a blend of both. Options fall into two main types: Lifetime mortgages, where the homeowner raises money by securing a mortgage on the property. The borrowing is repaid only when the homeowner dies or no longer needs the home (eg on moving permanently into residential care). Home reversion plans, where the owner sells a share, or all, of their home to a reversion company but retains the right to continue living there either rent-free or for...

ARCHIVED: This archived guidance, dated September 2009, was issued by The Chartered Governance Institute (CGI). It outlines practical methods by which a company might comply with the requirement to present, in a statement of capital, the amount paid up and the amount (if any) left unpaid on each of its shares (whether relating to the share’s nominal value or arising as premium) that applied under the Companies Act 2006 (CA 2006) before 30 June 2016. It is not maintained at present and remains archived...

By long-standing statutory rules, a limited company with share capital was allowed, most recently under the now-repealed Companies Act 1985 (CA 1985), to: convert some or all of its fully paid shares into stock; and reconvert any or all of its stock into fully paid shares of any denomination (CA 1985, s 121). Those powers had to be authorised by the company’s articles of association and each was to be exercised by a shareholders’ resolution passed at a general meeting. From 1 October 2009, when section 540(2) of the Companies Act 2006 (CA 2006) came into force, companies have been unable to convert shares into stock, unless such conversion was approved before that date. Nevertheless, where fully paid shares were turned into stock before 1 October 2009, the company may still reconvert that stock into fully paid shares of any nominal value, in line with CA 2006, s 620. The nature of stock Any quantity of fully paid shares in a...

The Directors [ insert offeror's name ] ([ Offeror ]) [ insert address ] [ and ] [ The Directors ] [ [ insert name of financial adviser ] (the Adviser ) [ insert address ] ] [ insert date ] Dear Directors Proposed acquisition of [ name of offeree ] ([ Offeree ]) It is our understanding that [ Offeror ] intends to acquire (the Acquisition ) [ all ] the issued [ and to be issued ] [ ordinary ] shares of [ insert nominal value ] each in [ Offeree ] (the Shares ) for the consideration, and otherwise substantially on the terms and subject to the conditions set out in the draft press announcement enclosed with this letter (the Announcement ), subject to such modifications or additions to such terms and conditions as may be required by the City Code on Takeovers and Mergers (the Code ), the Panel on Takeovers and Mergers (the Panel ), the High Court of Justice in England and...

The Directors, [ Insert name of company ] [ Limited OR PLC ], company number [ insert company number ] (the Company), [ Insert registered office of company ], [ Insert date ] To: The Directors Waiver of dividend[s] [ I OR We ], [ insert name ] of [ insert address or registered office ] [ and [ insert name ] of [ insert address or registered office ] ], [ am OR are ] the [ joint ] registered holder[s] of [ insert number of shares ] [ insert class of shares ] shares of [ insert nominal value ] each in the capital of the Company (the Shares)...

ORDINARY RESOLUTION THAT [ subject to and contingent upon [ insert any conditions relating to the exercise of the authority to sub-divide shares ], ] [ [ insert number ] OR the whole of the ] [ insert class ] shares of [ insert nominal value ] each in the capital of the Company [ held by [ insert name ] ] [ , bearing numbers [ insert number ] to [ insert number ] inclusive, ] be split into [ insert number ] [ insert class ] shares of [ insert nominal value ] each [ , bearing numbers [ insert number ] to [ insert number ] inclusive ] , with the rights and restrictions attaching to those shares (save as to nominal value) remaining unaltered by such sub-division...