Going permie and transferring shares

**northernladuk** · 25 March 2016, 10:16

Do you still employ the services of an accountant?

**craigy1874** · 25 March 2016, 13:26

Both work

Originally posted by ojock View Post

I finished my contract back in Dec 2015 and have since found a permanent role.

I own 50% of the shares in my company and my wife has the other 50%. I'm thinking of transferring all my shares to her as she does not work and I will be in the higher rate tax bracket with my new job. She can take 100% of the dividends going forwards and it will take a number of years before all the retained profits in my company will be depleted.

With the new £5k dividend allowance coming in tax year 2016/17, is this dividend extraction method still tax efficient? Or would I be better off closing down the company and claiming entrepreneurial relief?

But I would say MVL and entrepreneurs relief now before any rules change (subject to sufficient reserves being available to make the MVL worth it).

**ojock** · 25 March 2016, 17:56

Originally posted by craigy1874 View Post

But I would say MVL and entrepreneurs relief now before any rules change (subject to sufficient reserves being available to make the MVL worth it).

True, rule changes - for the worst usually. MVL worth it in my case given the level of retained profits. The large amount of retained profits is also the reason why I'm hesistant, perhaps un-necessarily, thinking it's a red flag on my tax return.

Whereas yearly dividend withdrawl by the missus would be at a more "acceptable" level, along with possible tax savings.

Going permie and transferring shares