It is possible, I did it although we have since married. I only did a 75:25 split though.
Do a search though, this has been discussed to death on here and I’m so bored of long winded discussions on this subject.
The TLDR; version: it’s not caught by the settlements legislation by default like it is with married couples (where you need to make sure the spouse exemption applies) but it is still potentially possible to be caught by the rules in the right circumstances.
There’s also no real case law to provide definite guidance either way so most would say that adds an element of risk. On the other hand HMRC seem to have lost interest in pursuing settlements cases since they lost Arctic with only a couple of exceptional cases.
There’s also the other risk which is not tax related at all which is that you are giving up half of your business and it (and any dividends) will be hers to do with as she pleases. Bear that in mind if you think there’s any chance of you splitting up (mind you this is also an issue if you are married).
Get advice from your accountant on how to do this properly and spend some time reading old discussions if you really want to know the ins and outs - I have posted a lot about this in the past.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Setting up Ltd Co with partner (non-spouse)"
Collapse
-
Originally posted by TwoWolves View PostFor god's sake marry the poor woman and stop making bastards.
Leave a comment:
-
Originally posted by Dario View PostHello,
I would like to know if there are any issues with setting up a new Limited Company with a non-spouse (long term partner living together with children) with 50/50 shares.
My partner would have little involvement in the running of the Company (admin type duties) but would however receive 50% of the dividends.
I can see clearly online that this is fine for Spouses (based on Arctic Systems case), but it is much less clear for non-Spouses and especially for one's where they were 50% shareholders from the inception of the Company (opposed to gifting shares after the company formed and have value).
Appreciate if anyone that has any further information on the above could shed some light.
Thanks
I would suggest talk to an accountant. Many questions to ask like does she work? If so would it take her to next tax bracket. Personally my wife does admin and no other source of income but she only has 40% of the shares and that was gifted after incorporation. This still leaves me in power over the company. When getting a mortage the provider wants to know if you have control and I'm sure I've been asked this same question elsewhere.
Best advice ask an accountant. Personal advice.... if she doesn't work and you trust her 100% (get on very well and both love each other) then gift 40% not 50% which is legitimate and still very tax efficient.Last edited by cosmic; 30 August 2019, 18:15.
Leave a comment:
-
Setting up Ltd Co with partner (non-spouse)
Hello,
I would like to know if there are any issues with setting up a new Limited Company with a non-spouse (long term partner living together with children) with 50/50 shares.
My partner would have little involvement in the running of the Company (admin type duties) but would however receive 50% of the dividends.
I can see clearly online that this is fine for Spouses (based on Arctic Systems case), but it is much less clear for non-Spouses and especially for one's where they were 50% shareholders from the inception of the Company (opposed to gifting shares after the company formed and have value).
Appreciate if anyone that has any further information on the above could shed some light.
ThanksTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: