Hi,
I have read a fair bit around shares gifting to the wife on this forum and so far I basically learnt that HMRC shouldn't see it as tax avoidance as long as the shares have voting rights.
I am thinking now to make my wife a shareholder of my ltd, as we had a little girl and she is not working anymore. However, it's a bit more complex than this, as she might return to work in around one-three years down the line and earn considerably. I was wondering what sort of options I have in this case.
Basically three questions/options:
1. If I gift her shares and she gifts them back down the line, is this legally a tax avoidance scheme or is it ok?
2. To better split dividends, my accountant suggested to have class A and class B shares, both with voting rights. I would give my wife class B shares, and I would get class A shares (me being the sole director). Is this an acceptable setup (legally) from HMRC point of view or would this be a clear tax avoidance scheme?
3. If I gift her class A shares, and once she returns to work earning considerably, would it be legal to shut down the existing ltd (or place it dormant) and start a new ltd with me as sole shareholder again?
Any suggestions would be very welcome.
Thanks
W
I have read a fair bit around shares gifting to the wife on this forum and so far I basically learnt that HMRC shouldn't see it as tax avoidance as long as the shares have voting rights.
I am thinking now to make my wife a shareholder of my ltd, as we had a little girl and she is not working anymore. However, it's a bit more complex than this, as she might return to work in around one-three years down the line and earn considerably. I was wondering what sort of options I have in this case.
Basically three questions/options:
1. If I gift her shares and she gifts them back down the line, is this legally a tax avoidance scheme or is it ok?
2. To better split dividends, my accountant suggested to have class A and class B shares, both with voting rights. I would give my wife class B shares, and I would get class A shares (me being the sole director). Is this an acceptable setup (legally) from HMRC point of view or would this be a clear tax avoidance scheme?
3. If I gift her class A shares, and once she returns to work earning considerably, would it be legal to shut down the existing ltd (or place it dormant) and start a new ltd with me as sole shareholder again?
Any suggestions would be very welcome.
Thanks
W
Comment