another ltd co owning a share in my ltd co

[TheFaQQer]

WifeCo buys a share of yourCo - you'd need to get a valuation of the company to determine the price, really.

YourCo pays dividends, let's say it's a 50:50 split between you and wifeCo and you pay £25k to each shareholder.

WifeCo now has £25k income from dividends, so needs to pay CT on that income (assume 20% tax rate, but I'm not sure). WifeCo (assuming wife owns 100%) pays dividends to wife of £20k. Wife pays lower tax on that dividend (10%).

Seems like it's an overcomplicated way to take some cash out, and pay corporation tax on the profit twice.

IANAA though, but it doesn't sound worthwhile to me.

[moorfield]

Let's suppose the other ltd co is owned by my wife - can you see where I'm going with this ?

[TheFaQQer]

Don't see why not, but if they are an investment company then there is a different tax regime. But that's for the buying company to worry about.

[moorfield]

Question for the accountants maybe ...

Can another ltd co own a share in my ltd co (and therefore receive dividends) ? - I don't see why not.