SVP for BTL wife as director

[northernladuk]

We need a new sub forum for innovative tax dodging ideas

If we had any we could. Instead we've got General for the dumb ones.

[zafoeta]

Depends, is it tax you're trying to dodge?

sorry, I meant my wife being shareholder (50/50).
Accountant says it's fine. Also read up on Arctic systems case - if going by this case, I could make her shareholder of the existing company by gifting her shares, but I am not interested in that, as she might start working soon again, and earn considerably.
The plan of the SPV is longer term investments for the family (even my wife my contribute into the SPV down the line) - the idea is not to channel money through the new SPV, even though if going by the Arctic systems case this could be ok too.

[ChimpMaster]

There have been numerous discussions here on this subject in the past. I have written in some detail about what you can do and how. So I'm not going to write it up again - you can use the Search function in Accounting & Legal.

You will need a good accountant and expect to pay a couple of grand or so for the corporate structure to be set up. It's all above board and legal: you can't get £ out of any of the companies without paying either income tax, div tax or CGT. You can however use your IT Co funds to invest in other ventures/assets this way.

[Old Greg]

We need a new sub forum for innovative tax dodging ideas

No need for innovative ideas when there are tried and tested products like the Oude Joris Max 120.

[michaelC]

sorry, I meant my wife being shareholder (50/50).
Accountant says it's fine. Also read up on Arctic systems case - if going by this case, I could make her shareholder of the existing company by gifting her shares, but I am not interested in that, as she might start working soon again, and earn considerably.
The plan of the SPV is longer term investments for the family (even my wife my contribute into the SPV down the line) - the idea is not to channel money through the new SPV, even though if going by the Arctic systems case this could be ok too.

how will you transfer the funds from the trading into the SPV? thats the main question.

[Lance]

all sounds very complicated.

In a GAARstly kind of way.


https://www.gov.uk/government/public...ti-abuse-rules

[RetSet]

how will you transfer the funds from the trading into the SPV? thats the main question.

No need to.

Change the SIC codes of both companies.

Turn OriginalTradingCo into NewSPVCo and the funds are already in place. Appoint MrsMC as a Director and gift her 50% shareholding.

Turn OriginalSPVCo into NewTradingCo and run all future contracts through that.

30 minutes online to Companies House and Robert's your Dad's Brother.

Simples.

You're welcome.

[ChimpMaster]

No need to.

Change the SIC codes of both companies.

Turn OriginalTradingCo into NewSPVCo and the funds are already in place. Appoint MrsMC as a Director and gift her 50% shareholding.

Turn OriginalSPVCo into NewTradingCo and run all future contracts through that.

30 minutes online to Companies House and Robert's your Dad's Brother.

Simples.

You're welcome.

a) Turn OriginalTradingCo into NewSPVCo and the funds are already in place.
This might be possible/legal. Can't see anything wrong with this because funds are still owned by the Co and you will have to still pay tax to extract them.

b) Turn OriginalSPVCo into NewTradingCo and run all future contracts through that.
I do not think this is possible because by doing (a) you are pretty much phoenixing.

[RetSet]

I do not think this is possible because by doing (a) you are pretty much phoenixing.

I don't believe so. All thats' happening here is a not yet active company has its SIC code changed.

Somebody loses out when phoenixing happens. In this instance nobody would lose anything.