S660 advice...?

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SantaClaus replied

17 November 2008, 17:27
"family business tax"

Sounds so friendly! More new Liebour speak.
Leave a comment:
LouC replied

17 November 2008, 15:42
[QUOTE=ASB;688271]Thought you might be back. QUOTE]

I'm all over 2 posts now. Many thanks ASB. You rock the IT tax legislative forums
Leave a comment:
ASB replied

17 November 2008, 15:40
Originally posted by LouC View Post

Hi everyone

Recently married and want to take the missus into the business so I can miminise tax by paying her divs.

So, been reading up on S660, which seems to try to legislate against this...

Here's my question: is this different if my missus BUYS the shares from my company?

I believe that my company has 1000 shares. Say I value my business at £100K. If my missus was to pay me 30K for 300 shares, then would she be able to accept dividend payments without incurring S660?

Is that possible? Or am i way out!

Many thanks
Lou

Thought you might be back.

Broadly S660 does not in anyway legislate against anything. It tries to define the tax consequences of certain actions. In any event the current state of affairs is that the taxman lost his most recent attempt to apply S660 in a specific way (search arctic systems) and here to start with:- http://www.contractoruk.com/s660/index.html

Now, in fairly typical fashion HMRC didn't really like the answer they got from the judiciary and therefore are proposing a new "family business tax". Basically this is likely to catch what you propose, though it will not happen until at least next april (so make hay). This is trying to tie rewards (or strictly the tax consequence of them) on fee earners in small businesses.
Leave a comment:
LouC started a topic S660 advice...?

17 November 2008, 15:19
S660 advice...?

Hi everyone

Recently married and want to take the missus into the business so I can miminise tax by paying her divs.

So, been reading up on S660, which seems to try to legislate against this...

Here's my question: is this different if my missus BUYS the shares from my company?

I believe that my company has 1000 shares. Say I value my business at £100K. If my missus was to pay me 30K for 300 shares, then would she be able to accept dividend payments without incurring S660?

Is that possible? Or am i way out!

Many thanks
Lou
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