Yes, the risk is that the dividend tax rates are increased. Even still, if she just drew up to the tax free allowance for a number of years, that helps with childcare etc.
My accountant wasn’t so sure about the Business Asset Disposal Relief rules and the 2 year waiting period that I think affects my wife’s shares. I did ask them to refer me to someone who did.
With the budget just around the corner, I need to consider all options quickly.
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Reply to: MVL or keeping company around?
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Previously on "MVL or keeping company around?"
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Originally posted by northernladuk View PostHave a search using the Google search method. This exact question has been asked in the last few weeks.
Edit - oh it was you. Did you not get enough of an understanding from that thread?
Looking briefly at your question. Surely gifting your wife shares for no other reason than to gain a tax advantage is exactly what aggressive anti avoidance rules exist for no?
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Have a search using the Google search method. This exact question has been asked in the last few weeks.
Edit - oh it was you. Did you not get enough of an understanding from that thread?
Looking briefly at your question. Surely gifting your wife shares for no other reason than to gain a tax advantage is exactly what aggressive anti avoidance rules exist for no?Last edited by northernladuk; 28 December 2020, 13:34.
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MVL or keeping company around?
I am considering moving to a permanent role. A few weeks ago I posted some questions about MVL assuming that was the best option.
I thought about it some more over the holidays and had a different thought. What if I instead gifted my wife the remaining the shares in the company? She could pay herself less than £50k a year and the effective tax rate would be lower than the CGT.
Are there any accounting/legal issues with this or anything else I'm not thinking about?
Thanks!Tags: None
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