What is the best way to take money out from the company bank account?

[northernladuk]

I've done this on my accountants adviCe. (one of the biggest contractor accountants also posting on this forum)

[stek]

There is no problem at all in gifting shares to your spouse and sharing dividends, provided you are married when the transfer takes place and the shares hold full voting rights (so are not purely a right to income).

If you're not married when you gift the shares or they are non-voting shares, you have a massive problem should HMRC come looking.

Also seems grossly unfair, I've been living with my partner for 13 years as man and wife, longer than I was married previously!

Yet I can't avail of this!

[Clare@InTouch]

Also seems grossly unfair, I've been living with my partner for 13 years as man and wife, longer than I was married previously!

Yet I can't avail of this!

It's not unusual though - you're also not on an equal footing when it comes to inheritance tax, the older married persons tax code etc. It's one of the exceptionally daft ways that the Government try to encourage marriage, and penalise anyone that doesn't want to get married.

You could just marry her of course. If you then gave her shares you'd save in tax the amount it costs for an awesome honeymoon. Just don't say "will you marry me for tax reasons darling"

[TheFaQQer]

Also seems grossly unfair, I've been living with my partner for 13 years as man and wife, longer than I was married previously!

Yet I can't avail of this!

[ChimpMaster]

It's not unusual though - you're also not on an equal footing when it comes to inheritance tax, the older married persons tax code etc. It's one of the exceptionally daft ways that the Government try to encourage marriage, and penalise anyone that doesn't want to get married.

You could just marry her of course. If you then gave her shares you'd save in tax the amount it costs for an awesome honeymoon. Just don't say "will you marry me for tax reasons darling"

Can't his bird just buy a share of the business?

[Clare@InTouch]

Can't his bird just buy a share of the business?

If she bought for market value on genuine commercial terms, on an arms length basis, then yes. But that could be expensive if the company has a long contract in place and therefore guaranteed future income of a certain level or a lot of assets. Plus if she's buying the shares from him he'll have a capital gain to pay tax on as presumably he bought the shares at par (£1 each on incorp).

If not, it's a Settlement.

[Martin at NixonWilliams]

If she bought for market value on genuine commercial terms, on an arms length basis, then yes.

What Clare says is correct, but it is almost impossible to place an accurate market value on the shares of a one person contractor company for so many reasons.

[stek]

What Clare says is correct, but it is almost impossible to place an accurate market value on the shares of a one person contractor company for so many reasons.

Great, she can have half for a quid!

[Clare@InTouch]

Great, she can have half for a quid!

If you can honestly say that you'd also sell half your company to me for the same value, then go for it.

My £1 is in the post

[TheCyclingProgrammer]

kesm has a boyfriend, so not really an option (without lots of careful thought and planning, before TCP comes along)