Dividend via a Trust

[Gavwar]

Hi

I wouldn't usually entertain these schemes that we all get phone calls on, but with the new dividend tax law coming into force in April I guess I'm a bit more receptive.

Has anyone heard of Trust Planning? Is this really a viable option? Or is it so risky that you're better off paying the additional tax?

Thanks

[northernladuk]

The new tax is hardly going to cripple you.

[Iliketax]

Hi

I wouldn't usually entertain these schemes that we all get phone calls on, but with the new dividend tax law coming into force in April I guess I'm a bit more receptive.

Has anyone heard of Trust Planning? Is this really a viable option? Or is it so risky that you're better off paying the additional tax?

Thanks

Dividend via a Trust?

Is this the one where:

- there is a chargeable lifetime transfer for IHT purposes when you give shares in your limited to the trust,
- there is employment income tax on the value of the shares that you give the trust because the trustee is an associated person of you,
- the trust pays the highest rate of dividend tax,
- there is PAYE/NIC when the trust earmarks the cash for you or pays it to you, and
- IHT is due on the amount in the trust every ten years and when cash is paid to you?

No idea of whether DOTAS would apply but make sure you find out as if there is a tax advantaged it would look like the new Financial Products hallmark will apply.

[ASB]

The new tax is hardly going to cripple you.

Maybe it won't. But it is substantial for those receiving a large portion of income via dividends. Depending your point of view it may or may not be justified.

A30% increase I the basic rate of tax from 20 to 26% would probably have raised quite a lot of comment. That is in effect what this change is.

[portseven]

RDE Wealth? Just had their call too

[BrilloPad]

Lets just say it is fine now. Give it a few years and HMRC will collect. Retrospectively.

If you are silly enough to try it, then at least put anything "saved" into a CTD.

[northernladuk]

We've had this lot crop up a few times recently.

http://forums.contractoruk.com/accou...ml#post2149988

[LisaContractorUmbrella]

RDE Wealth? Just had their call too

Not sure I'd trust my money to a company that shows net assets of minus £31k, especially as they are promoting 'wealth' structures