Originally posted by missinggreenfields
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Shoving some dividends into the missus
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Originally posted by Lance View PostNeither do I but more for the 2% interest on current accounts up to £5k. It's not a lot but it's mine rather than the banks and you can get £1k per year of interest on savings tax free now.
Between my wife and I, we have three Santander 123 accounts because they were paying 3% on balances > £3k so £60k earning 3% for the year. Still probably worthwhile on larger balances even after the interest rate cuts.Comment
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Originally posted by Major Hassle View PostI agree with Fred, have 50:50 share distribution, normal shares wife is Company Secretary. Wld avoid Aphabetty Spaghetti shares personally - no such thing as a free lunch
I'm not sure this works very well when the other person has a regular permie job - surely you may well push them into the higher-tax bracket this way which would be counter-productive?Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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Originally posted by d000hg View PostA couple of people implied that 50:50 split is recommended/safer. On what grounds is that better than 75:25 or whatever you think makes sense?
I'm not sure this works very well when the other person has a regular permie job - surely you may well push them into the higher-tax bracket this way which would be counter-productive?
More of an issue is the type of shares, ordinary shares across the board are best IMO rather than alphabet/preferential which in the same way as waivers begs HMRC avoidance questions.Last edited by Major Hassle; 10 November 2016, 21:03."why ride a vespa when you can push a lambretta?"
As I look ahead, I am filled with foreboding; like the Roman, I seem to see "the River Tiber foaming with much blood."Comment
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Originally posted by northernladuk View PostBecause it looks you are allocating the divi to her to avoid the taxation on yourself but receiving the benefit when it hit's your joint account. Someone else will provide a posher explanation with big words shortly.
I am frankly struggling to believe that HMRC would really care about spouses receiving dividend payments into their joint bank account.Comment
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Originally posted by SuperLooper View PostIs there any actual evidence to support this belief? Legislation, case law, precedent? Or is it just received wisdom?
I am frankly struggling to believe that HMRC would really care about spouses receiving dividend payments into their joint bank account."why ride a vespa when you can push a lambretta?"
As I look ahead, I am filled with foreboding; like the Roman, I seem to see "the River Tiber foaming with much blood."Comment
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Originally posted by Major Hassle View PostMore of an issue is the type of shares, ordinary shares across the board are best IMO rather than alphabet/preferential which in the same way as waivers begs HMRC avoidance questions.
One of the key things in Arctic was that the shares had the same rights, and so that gives a good indication of how preference shares might be dealt with. AFAIK, no case has been brought or settled about preference shares, but I would be wary of preference shares because of the clear difference between preference shares and those that were used in Arctic.
Alphabet shares which match the criteria as those used in Arctic (not just a right to income, equal voting etc) are IMHO not in the same class as preference shares or dividend waivers. I see no difference in using alphabet shares than splitting the company 50:50 or 75:25 or even 99:1 with ordinary shares of the same class. I don't see it as risky and, as has been said before, it's something that InTouch have written about in the past as well.Comment
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Originally posted by missinggreenfields View PostI see no difference in using alphabet shares than splitting the company 50:50 or 75:25 or even 99:1 with ordinary shares of the same class. I don't see it as risky and, as has been said before, it's something that InTouch have written about in the past as well.Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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Originally posted by SuperLooper View PostIs there any actual evidence to support this belief? Legislation, case law, precedent? Or is it just received wisdom?
I am frankly struggling to believe that HMRC would really care about spouses receiving dividend payments into their joint bank account.
I think one of the outcomes of the Arctic case was that it was acceptable to gift shares to a spouse. Part of the reasoning being that you're married, so you can share your assets and it's not the governments place to intervene in that.
So how could they claim that you are "receiving the benefit" by paying it into the joint account? That's completely at odds with the above.Comment
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