Originally posted by pjclarke
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Limited Company - Income Splitting yes or no?
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Free advice and opinions - refunds are available if you are not 100% satisfied. -
Originally posted by Wanderer View PostAnyone can buy shares in Barclays and get a dividend. Not everyone can buy a share in your company and take a cut of your profits. Also, your wife is considered to be a "connected person".Comment
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So what if you're not married
I am one of those heathens living out of wedlock.
2 kids for her to look after at home now and we're trying to calculate the going back to work or housemum/doing my invoices and paperwork while they're at nursery idea.
What difference does the not being married thing make with regards to the sale of 50% of shares and/or the payment of dividends?
J.Comment
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If you're not married (or not in some equivalent, formal civil partnership), S660 doesn't apply. End of.Blog? What blog...?Comment
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So there's less of a problem
So as we're not married there is even less of an issue?
She can have half the shares and half the dividends and it's not a problem?
I'll pay her the minimum for her time for the work itself.
Cheers for the speedy response beforehand.
J.Comment
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Originally posted by biggles_1 View PostSo as we're not married there is even less of an issue?
She can have half the shares and half the dividends and it's not a problem?
I'll pay her the minimum for her time for the work itself.
Cheers for the speedy response beforehand.
J.Comment
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Originally posted by Hex View PostThe catch is that you can only gift the shares tax free if she's your spouse. If she's not your spouse there'll be tax implications in transferring the shares of an existing company.Blood in your pooComment
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So is there a big differerence between selling/gifting a 50% share in a company to someone as opposed to forming a company where that someone is a joint shareholder from the company creation?
If a person was the sole shareholder of a LTD then would it be better to cease trading and form a new company with equal shares issues at company formation time?
If a company has two shareholders since it was formed, then does that mean that dividends have to be paid equally to both shareholders?Free advice and opinions - refunds are available if you are not 100% satisfied.Comment
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Normally dividends are paid based on the number of shares allocated to each person, it doesn't have to be a 50/50 split. If your wife earns a lowish salary you might only want to to give her 20% of the company shares that would take her up close to the start of the 40% income tax band based on your typical company annual profit.
Maybe if your company started with only 2 shares you might have a problem. But most have 10 or a 100, so easy to split share allocations in 10% chunks.Comment
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