Issue shares to the missus

[Project Monkey]

How do you issue shares in MyCo to your missus (for obvious reasons)?

Do I just knock up a couple of share certificates, or do I need to register her share holding somewhere?

[northernladuk]

How do you issue shares in MyCo to your missus (for obvious reasons)?

Do I just knock up a couple of share certificates, or do I need to register her share holding somewhere?

Do you have an accountant and have you taken advice about this. The obvious reasons are tax evasion which is illegal so you need to make sure you have it covered properly. Companies House needs to know about share allocation but my accountant did all mine.

[MichaelSJD]

So long as everything is in order as northernladuk refers to, in order to create new shares in your company an SH01 "Return of Allotment Shares" form should then be filed with Companies House. You are able to file this form online at Companies House's website.

[Wanderer]

How do you issue shares in MyCo to your missus (for obvious reasons)?

Do I just knock up a couple of share certificates, or do I need to register her share holding somewhere?

Have a read up on Business Link but you are best to get an accountant to review your financial situation and make sure you are not making an expensive mistake.

The split of the shares depends on if your wife has any income already. If she does then you may end up paying more tax with a 50/50 split so get a professional to run a slide rule over your figures. Seriously, it won't cost much and you can potentially get stuffed for thousands of pounds in avoidable tax if you do it wrong.

[Project Monkey]

Do you have an accountant and have you taken advice about this. The obvious reasons are tax evasion which is illegal so you need to make sure you have it covered properly. Companies House needs to know about share allocation but my accountant did all mine.

Groan... another predictable response! What's the point of this forum if the response is always "ask your accountant"?

Yes, I have an accountant. Yes, I've asked her for advise. Yes, I want to do this legally. No, I don't wan't to evaid tax.

As nluk has done I could just let my accountant do it all, but I would prefer to understand the process and what exactly I'm asking her to do.

[northernladuk]

Groan... another predictable response! What's the point of this forum if the response is always "ask your accountant"?

Because...

A) So many monkies come on here asking us who don't have an accountant and are getting themselves in a world of trouble. We don't know your situation so the best advice is to ask a profressional. If you don't like it try wording your initial post better to include the fact you have asked.

B) Your accountant is the expert (in theory) and we are a bunch of random strangers who generally DGAS. You get the advice you pay for.

I would argue re-reading your initial request there is no hint you have asked your accountant. If you had you would had more of a clue what you were asking about based on her advice.

Although I would do it if I was in a position to do so you could argue that if you try keep yourself below the divi upper limit and give your wife extra divis in to your 'shared account' you are effectively evading tax. The idea would be you would give yourself it all and go over the limit. I bet if there was no limit there would be a lot less spouses with dividends. Anyhow, it is legal so avoidance not evasion but depends on which side of the fence you sit. Anyway, it is allowable so fill yer boots.

Oh and just to put my very personal opinion forward I would be splitting the divi 70/30 or 60/40 and not go 50/50 as Wanderer suggests. It is an age old argument we will probably never resolve but feel more comfortable showing a split in favour of the main party. My accountant advises similar, other say 50/50 is fine. Up to you that one.

[ASB]

Groan... another predictable response! What's the point of this forum if the response is always "ask your accountant"?

Yes, I have an accountant. Yes, I've asked her for advise. Yes, I wan't to do this legally. No, I don't wan't to evaid tax.

As nluk has done I could just let my accountant do it all, but I would prefer to understand the process and what exactly I'm asking her to do.

True, but the point is what is appropriate in your case is appropriate to your circumstances. However some pointers:-

- The company must have a register of interests. Returns are required to be made to Companies house from time to time, a full register is required I think every two years, changes annually.

- The company will have been incorporated with a specific share capital, and this will be in the form of "x units of y par value". If you need to deviate from this then there will be additional things to do (e.g. if the company was incorporated with one share and you have it then there is no capital available to allot here).

- If you happen to own the entire share capital then you can sell some of it to somebody else

- Authority to issue new shares or change the share structure in any way or even dispose of your shares may be restricted by the articles of association

- There are potential S660 consequences depending upon whether you are married, living together or whatever.

- There are potential CGT consequences if you are selling or gifting some of your shareholding to your wife.

- If you are disposing of some of your shares then there is a question as to what is "fair value"

- You can't just "knock up a share certificate". That would, in effect, just be magicking this new share capital into existence.

The likelihood is that you can create some new share capital, appropriate resolutions are needed, file that with companies house, issue them to your wife, collect the fair value from them into the company. [Though they can also normally be issued as nil paid].

Whether this is the right thing for your circumstances depends on what they are. It may well be. It may not.

[Wanderer]

Groan... another predictable response! What's the point of this forum if the response is always "ask your accountant"?
Yes, I have an accountant. Yes, I've asked her for advise. Yes, I want to do this legally. No, I don't wan't to evaid tax.
As nluk has done I could just let my accountant do it all, but I would prefer to understand the process and what exactly I'm asking her to do.

If you had come on here and said "my wife earns X amount, my salary is Y, my company profits are Z and my accountant is recommending a 60/40 split of ordinary shares, what do you think?" then maybe people can give a useful opinion. For us to advise you, we would have to know about your company share structure, how much in salary/dividend you and your wife take, what other income you have etc. If you do it wrong then one or both of you may end up paying a lot more tax than you need to.

As for the tax avoidance/evasion angle, income splitting is perfectly legal tax planning and lots of people do it. Honestly though, your accountant is the one to advise on the finer details of this because they can take all that into consideration. If there is something in the accountant's advice that you want to discuss then that's fine, but "knocking up" a couple of share certificates is the easy part.

[Project Monkey]

Guys, I only asked 'how do I issue shares', I wasn't looking for a full financial consultancy service.

I think the answer I was looking for is: register the new allocation with Companies House via an SH01.

[ASB]

Guys, I only asked 'how do I issue shares', I wasn't looking for a full financial consultancy service.

I think the answer I was looking for is: register the new allocation with Companies House via an SH01.

Don't forget the board meeting and minuting of same too though (a resolution is needed and there is no problem provided there is only currently one class of share).

Also, if going to an employee the employee related securities legislation could cause issues (though as you say that is beyond the question you are asking)