Limited Company - Income Splitting yes or no?

[Wanderer]

How can I make her 50% shareholder now?
Is there anything I need to worry about e.g S660?

Your accountant's advice is on the right track, go back them and ask them to tell you exactly how you go about issuing the shares. It's not a difficult process but you should be very careful - if you mess it up it will cost you and your wife thousands in tax...

[garnet]

Your accountant's advice is on the right track, go back them and ask them to tell you exactly how you go about issuing the shares. It's not a difficult process but you should be very careful - if you mess it up it will cost you and your wife thousands in tax...

I will ask him. I am asking here because I want to know what am I doing.
I see 2 options:
-Using form sh01 to issue more shares and in my AR to specify who do they belong to(my wife)
-Giving a gift to my wife - 50% of my shares. How is is done?

Which one will not cost me anything in tax?
Or is there a another way?

[northernladuk]

I will ask him. I am asking here because I want to know what am I doing.
I see 2 options:
-Using form sh01 to issue more shares and in my AR to specify who do they belong to(my wife)
-Giving a gift to my wife - 50% of my shares. How is is done?

Which one will not cost me anything in tax?
Or is there a another way?

Let see. You pay a professional to give you advice and do this type of stuff for you...or you can ask on a public forum and get advised to speak to your professional.

[Jessica@WhiteFieldTax]

I will ask him. I am asking here because I want to know what am I doing.
I see 2 options:
-Using form sh01 to issue more shares and in my AR to specify who do they belong to(my wife)
-Giving a gift to my wife - 50% of my shares. How is is done?

Which one will not cost me anything in tax?
Or is there a another way?

So long as you are Married or in a Civil Partnership, then either is likely to be acceptable as things stand at the moment.

Caveat (a) the law may change in the future - its parked for now, with no indication of it being resurrected.

Caveat (b) this is assuming there is nothing strange happening, eg EIS or different share classes. I'm assuming a typical PSC with one class of share?

Caveat (c) don't make changes too often. No hard and fast rule, but more than once a year is IMV a risk, although quite how HMRC would attack I don't know.

[garnet]

Let see. You pay a professional to give you advice and do this type of stuff for you...or you can ask on a public forum and get advised to speak to your professional.

off/ Let's say I want to be in more control on both my matters and the professional I pay.Doest this satisfy you or there will be other stupid questions?

[northernladuk]

off/ Let's say I want to be in more control on both my matters and the professional I pay.Doest this satisfy you or there will be other stupid questions?

Have a look through here see if there is anything there that might help..

gifting shares site:forums.contractoruk.com/accounting-legal/ - Google Search

Interesting that most of the questions asked about how to gift shares has a 'speak to your accountant' response... and not from me.

[Wanderer]

We really don't care if you do it wrong so just go an do it however you want to.

Good luck.

[Sausage Surprise]

sorry i couldn't find any similar posts.
i was just thinking if i could set up a second ltd for my partner, obviously to reduce my corporation tax in 2011-2012.
i'm contracting outside ir35, earning under £25,000 per annum.
£589 per month or £7072 per year in wages and £3000 expenses would leave me roughly £15,000 in profit or £12,000 net dividends and £3,000 ct.
so it means a lot to me if i can avoid £1500 in ct through paying just over £589 per month into the other ltd.
what do you think?
will it be anywhere close to s660?
thanks in advance

Am I missing something here?
If you are only earning £25k why would you want to split dividends?

[malvolio]

Am I missing something here?
If you are only earning £25k why would you want to split dividends?

I think someone is thinking that dividends have an impact on CT and that someone has no idea what the Ramsay Principle is all about

What was that about speaking to your accountant again?

[northernladuk]

I think someone is thinking that dividends have an impact on CT and that someone has no idea what the Ramsay Principle is all about

What was that about speaking to your accountant again?

Funny thing is... Anyone with a hole in their arse would have asked their accountant first and not needed to post on here. If people feel the need to post on here and don't think to ask their accountant or are purposely not doing for one reason or another are looking for some dodgy answer we will not give them.. So the advice is wasted really... Will still point it out though