Dividend To Children As Shareholder(s)

[TheCyclingProgrammer]

Thanks - that 2nd link is one that I previously read through. My dilemma is the break points for the age ranges.

Wanted to avoid trusts/etc and also resolve prior to the April 2016 dividend changes.

Going to see accountant later this week.

To elaborate on the above, settlements to a non-minor child are potentially caught by the normal "retains an interest" rule (s624) however shouldn't be a problem if you the giver does not retain any interest in the shares or generated income from those shares.

If the children are minors, then s624 is irrelevant; s629 is what applies and you can read all about that here:
TSEM4300 - Settlements legislation: settlement for unmarried minor child: settlements legislation
TSEM4310 - Settlements legislation: settlement for unmarried minor child: income less than £100

[northernladuk]

To elaborate on the above, settlements to a non-minor child are potentially caught by the normal "retains an interest" rule (s624) however shouldn't be a problem if you the giver does not retain any interest in the shares or generated income from those shares.

If the children are minors, then s624 is irrelevant; s629 is what applies and you can read all about that here:
TSEM4300 - Settlements legislation: settlement for unmarried minor child: settlements legislation
TSEM4310 - Settlements legislation: settlement for unmarried minor child: income less than £100

So that will only apply to a dwindling number of Yorkshire kids as they close t'pits down and increase the rate of unemployment in old mining towns.....

[FMCG]

Absolutely zero plan to take and use this money from the kids. Very much intended to be be theirs, to pay for University related expenses (accept it will include beer and probably as well as fees and living expenses).

Appreciate the links and accept that the <16 year old could land me with a tax liability if I go down this route whereas the >18 should not.

Guess the dilema I face - is the 16-18 year old a minor child, even though has own NI number ie not yet clear if 16 is the cut off limit or 18?

[TheCyclingProgrammer]

The definition of minor child is pretty clear in the legislation:
http://www.legislation.gov.uk/ukpga/2005/5/section/629

[FMCG]

(7)In this section and sections 631 and 632—

(b)“minor” means a person under the age of 18 years, and “minor child” is to be read accordingly, F3...


Much appreciated. Think this is the missing piece of information that I sought.

[ASB]

If I were hmit I would take the view that the asset given to the child - scenario 3 - was nothing more that diverting income. I would take the view that it was reducing the need for parental support. As such it is a gift of income, which may be irrelevant, but there is also an implied retained interest. So caught.

But that view may not prevail.

if however you chose to gift a chunk of your share portfolio or a house then since that is not directly related to your income it would be different.

Further, it does sem possibly worth a shot. If it fails the income will be asessed to you and that would be the case otherwise anyway. Interest is the downer. And a possible penalty.

if the child has gone their own way in life then I dont really see any problem. The question is whether the child is dependant.