MVL or keeping company around?

[concord]

I am considering moving to a permanent role. A few weeks ago I posted some questions about MVL assuming that was the best option.

I thought about it some more over the holidays and had a different thought. What if I instead gifted my wife the remaining the shares in the company? She could pay herself less than £50k a year and the effective tax rate would be lower than the CGT.

Are there any accounting/legal issues with this or anything else I'm not thinking about?

Thanks!

[northernladuk]

Have a search using the Google search method. This exact question has been asked in the last few weeks.

Edit - oh it was you. Did you not get enough of an understanding from that thread?

Looking briefly at your question. Surely gifting your wife shares for no other reason than to gain a tax advantage is exactly what aggressive anti avoidance rules exist for no?

[eek]

Have a search using the Google search method. This exact question has been asked in the last few weeks.

Edit - oh it was you. Did you not get enough of an understanding from that thread?

Looking briefly at your question. Surely gifting your wife shares for no other reason than to gain a tax advantage is exactly what aggressive anti avoidance rules exist for no?

Not really as that was covered by the arctic ruling - it's an interesting question that I actually would like to see an accountants viewpoint but I don't think it makes much sense. Better to take the 10% hit now rather than hoping that dividend tax rates aren't increased.

[concord]

Yes, the risk is that the dividend tax rates are increased. Even still, if she just drew up to the tax free allowance for a number of years, that helps with childcare etc.

My accountant wasn’t so sure about the Business Asset Disposal Relief rules and the 2 year waiting period that I think affects my wife’s shares. I did ask them to refer me to someone who did.

With the budget just around the corner, I need to consider all options quickly.