I have three children all under 18, can i ssue shares to them?
Would the div's be held in trust untill they reach 18?
Pleomax
Would the div's be held in trust untill they reach 18?
Pleomax
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Pleomax
This is an unusual paragraph. I'm curious as to just how quickly you can find out what is so unusual about it. It looks so ordinary and plain that you would think nothing was wrong with it. In fact, nothing is wrong with it! It is highly unusual though. Study it and think about it, but you still may not find anything odd. But if you work at it a bit, you might find out. Try to do so without any coaching! -
First hit on google for "Can children own shares"
http://www.savingforchildren.co.uk/S...ares-11_1.html
Children under the age of 18 are not allowed to buy shares for themselves. However adults can invest in the stock market on their behalf and take advantage of special tax allowances for children
Because children have their own personal allowances for earned and unearned income and also their own capital gains tax (CGT) exemption then any modest investment in shares will be, in effect, tax-free. A personal allowance of £5,435 (2008/2009) will cover any dividend payments (payouts made by companies to their investors once or twice a year)."Israel, Palestine, Cats." He Said
"See?" -
They will need to be held in a bare trust. There is also a specific bit of S660. Income generated from parental gifts in excess of 100 quid per parent per child is taxed on the parent anyway. The notional tax credit is not reclaimable.
If you want to hold the income in trust you will need to settle the shares into an accumnulation and maintenance or discretionary trust depending upon your objectives. There are also tax implications on settlement on you.
Conceviably if the children buy the shares at market value (probably based on retained profit per share) out of money that has not been donated to them by you (eg gifts from grandparents) then you can avoid the S660 implications.
Ideally you should get the bare trust stamped and recorded at the appropriate inland revenue office (though this is optional). It used to be in Truro but might not be now.Comment
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