Reallocating Shares - Red Flag for HMRC S660??

[contractor55]

The point being a savings plan for my children, rather then come out of my own money , it is via the co ltd so potentially reducing my corp tax and my own tax ?????

[Clare@InTouch]

The point being a savings plan for my children, rather then come out of my own money , it is via the co ltd so potentially reducing my corp tax and my own tax ?????

It may reduce your own tax as you'd not be paying it from your own income, but dividends don't affect CT.

[contractor55]

Corp tax- true . My mistake.
I use it to reduce potential any higer tax bracket and provide some savings to my children

[malvolio]

Corp tax- true . My mistake.
I use it to reduce potential any higer tax bracket and provide some savings to my children

You can do that by paying yourself less...

What you're not grasping is that the only way to make it work is to put the money out of your reach forever (which is itself pretty tricky to achieve). However you do that won't make any difference to your personal income or your CT bills, and any taxable income arising will be charged to your children anyway.