I want to change the share issue of my Ltd, I had it as 60/40 but want it 100 to me, how do I go about this?
-
-
do you mean it's 60 you and 40 somebody else ?
I think you have to buy them, the company itself can do this by passing a resolution.Cenedl heb iaith, cenedl heb galon
-
Yeah 40 to my partner, however I dont want to pay dividends to her, just me, she is ok with that, she is alsio the company sec.Originally posted by BluebirdComment
-
Get her to sign a dividend waiver. Should be able to find a template on the net. Form your own opinion about any potential S660 issues though.Originally posted by DiestlComment
-
Isnt there a case about to go to court soon?Comment
-
It's the IR appeal to the lords I think.Originally posted by Diestl
However, I suspect you are OK. The IR argument goes about effort. But if your partner is not getting the divvi and it is you that puts in the effort then they don't really have this argument.
If, however, by some coincidence your partner waiving the dividend results in the combined tax take going down then the IR might like to argue that it was in fact a settlement from them to you and they should be taxed on it. No idea what argument they'd try given their argument in the Arctic case but I'm sure they could dream up something.Comment
-
Get professional advice about divi waivers. They can be a flag to the Revenue. My accountant advised against divi waivers as there are a number of circumstances where they can be used to avoid tax.
If your partner is not contributing to the company, then you could do as I have done which is to issue divi's to both of you, but go with the S660A premise that there IS a settlement - with you as settlor. This means you get taxed on your divi AND her divi, which providing they don't push you above the UEL, means there is no more tax to pay.
It means that if you wanted to pay, say £10k in divi's, you would pay yourself £6k of them and her £4k, but for taxation purposes they will be counted as if the whole £10k went to you. This is how the Revenue would like it to be re. S660A, so they can't really argue against it. Before you do anything, see your accountant.
She still retains 40% ownership of the company though, so I presume this is OK, and that your reason for adjusting share issue is about divi's.It's my opinion and I'm entitled to it. www.areyoupopular.mobiComment
-
Or can she not just resign from being a director form 288B?Comment
-
She can resign from an office but she is still a shareholder. There is a difference. Give me strength !Originally posted by PAGIt's my opinion and I'm entitled to it. www.areyoupopular.mobiComment
-
surely you can transfer the shares to anyone you want without financial gain.Comment
Comment