S660 query

[chrisl]

Rather than putting your wife/husband on the business as a shareholder, is there anything to stop you added your mum/dad for example or even someone not actually related to you yet like your girlfriend/boyfriend.

Does S660 apply here and if not then what does.

Thanks

[DaveB]

Nothing to stop you doing it, but they are not allowed to transfer funds recived as dividends back to you. That counts as Tax Evasion and gets you in trouble.

[chrisl]

But does S660 actually apply or is that legislation literally for married couples?

[ASB]

But does S660 actually apply or is that legislation literally for married couples?

S660 doesn't apply if you don't retain an interest. You might find that big hurdle though with parental shareholders. (Though TBH a couple of my relatives held 1% of myco having stumped up advice etc - the money never in any way found it's way back to me and HMIT never batted an eyelid, even in inspection - but I'd be nervous in this climate).