First Contract - Various Questions

[Wanderer]

Wife as a shareholder is fine. Arctic Systems made that clear. The issue is ensuring that any money paid to the wife in Dividends cannot be reasonably said to have been transferred back into your possession afterwards.

There are so many ways around this it's unreal. I don't see how the different accounts idea holds much water to be honest.

What if my wife decides to put the money she receives straight into our joint account to offset the mortgage? What if I got the wife to open an account and then give me the debit card and pin number so I could use it? What if my wife uses the money to pay for the weekly shop or a family holiday? And at what point does the dividend stop being "hers" and become "ours"?

The more I think about it the more bizarre it sounds.

[Craig@Clarity]

There are so many ways around this it's unreal. I don't see how the different accounts idea holds much water to be honest.

What if my wife decides to put the money she receives straight into our joint account to offset the mortgage? What if I got the wife to open an account and then give me the debit card and pin number so I could use it? What if my wife uses the money to pay for the weekly shop or a family holiday? And at what point does the dividend stop being "hers" and become "ours"?

The more I think about it the more bizarre it sounds.

In my opinion, I agree. As I said before, it doesn't matter which account it goes into. Paying dividends to the wife who holds the same class and type of share as the husband (or vice versa!) is exempt from what was formerly s660 and so income shifting doesn't apply. Therefore, if income shifting doesn't apply, neither does it apply if it is paid into a joint account.