Income Shifting !

[Crossroads]

not only does it apply to established companies, as mav has already pointed out it will apply to already accumulated funds.
and no, it doesn't just apply to Husband and wife

tim

Could someone explain this bit please? If a company has husband/wife shareholders, but doesn't take any further dividends then how can it apply to accumulated funds in the company account?

[malvolio]

Could someone explain this bit please? If a company has husband/wife shareholders, but doesn't take any further dividends then how can it apply to accumulated funds in the company account?

What happens when you take the money out? Like when you retire in 20 years time. Or sell the company to someone else...

[tim123]

Could someone explain this bit please? If a company has husband/wife shareholders, but doesn't take any further dividends then how can it apply to accumulated funds in the company account?

It doesn't

I was asuming that you would want to take dividends, because that is still likely to be the most cost effective way of withdrawing the money.

You can't leave the money in there forever. Well you can, but what would be the point of earning it if you did?

tim