Free Shares

[koiman]

My employer has formed new company which is currently making no money and is in fact currently in debt, the recovery plan is good and I believe that the future is bright and achievable. The owner says he needs me to help him if it is to be a success. To tie me closer to the business he has offered me a 10% share in the company.
I know I will have to pay tax on any future dividends but will I be taxed for the share (currently making no profit ) he is giving me ?

[FredPuli43]

No. You are being given a new asset, not realising an existing one.

[Zacs-Master]

You don't get taxed on shares, only the dividends generated by them. If the company isn't making a profit then there won't be any dividends.

[VHG]

Has he actually issued any shares?

If not how is he going to give you 10% of the company?

[koiman]

The share breakdown paperwork is being done as we speak by the companies accountants.

[1eyedjack]

It potentially makes a difference in principle whether he gives you 10% of the shares that he already owns or whether you subscribe for new shares in the company which end up with your holding 10%. In the latter case, unless it is part of an approved EMI scheme, then on shares that you receive by reason of your employment you could get taxed as employment earnings on the excess of the market value of the shares over the price that you pay for them. But from the facts stated, unless there is a lot of capital value to the company, it seems likely that the shares are currently worth nothing more than par, which being the case I suspect you are fairly safe.