Frequent Shareholder Changes and HMRC

[Greg@CapitalCity]

In my mind the 80/20 split shows some willing to share the profits of the company in a reasonable manner where as 50/50 is just avoiding tax and doesn't sit right with me.

I know what you mean, but there are just so many inconsistencies with this. On divorce, his wife would get half the company. On death, she would get the whole company. But while both parties are happily married any means of sharing ownership is frowned upon by the HMRC.

[northernladuk]

I was under the impression setting up class B shares was like a red rag to a bull for LTD's. Allows you to syphon as much as possible away as it isn't linked to the directors earnings so maximises avoidance.

That's what I read on here anyway.

[Greg@CapitalCity]

I was under the impression setting up class B shares was like a red rag to a bull for LTD's.

I know. But its not.

[prozak]

I was under the impression setting up class B shares was like a red rag to a bull for LTD's. Allows you to syphon as much as possible away as it isn't linked to the directors earnings so maximises avoidance.

That's what I read on here anyway.

That is what I thought as well.

All the advice I had seen about income splitting with the spouse always pointed out that it was important that all shareholders were of the same class.


So any further thoughts on my original post anyone?