No UK shareholder allowed?

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prozak replied

11 January 2011, 16:53
Originally posted by sal626 View Post

I have done this for a “plan B” limited company (not the one I use for contracting). I’m in UK and 2 other shareholders are abroad. Discussed with my accountant and according to him no issues.

If set up like this and not a one man personal services company then your accountant is probably right.....
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prozak replied

11 January 2011, 16:48
Originally posted by chrisl View Post

Having a limited company in the UK and the director working in the UK, if the director decides to add a shareholder to the company and the second person is a non-UK resident and never has been UK resident, is this ok?

This person will receive dividends which i know would be fine if they are a UK taxpayer (watching out for S660), but what if they are not?

Advice required.

This is definitely one of those situations where HMRC might decide to disregard this structure (i'm sure there is an official term) and tax the director as though you paid yourself.

Will the other shareholder be paying fair value for the shares?
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sal626 replied

11 January 2011, 16:46
I have done this for a “plan B” limited company (not the one I use for contracting). I’m in UK and 2 other shareholders are abroad. Discussed with my accountant and according to him no issues.
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Clare@InTouch replied

11 January 2011, 16:28
You can add who you like, so it's not an issue from that point of view. It makes no difference that they are not UK resident from your company point of view either. Their own tax situation will depend on where they are resident and what the double taxation treaty for that country says.

I'd suggest you get professional advice based upon what you want to acheive and taking everyone's full tax situations into account.
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chrisl started a topic No UK shareholder allowed?

11 January 2011, 16:21
No UK shareholder allowed?

Having a limited company in the UK and the director working in the UK, if the director decides to add a shareholder to the company and the second person is a non-UK resident and never has been UK resident, is this ok?

This person will receive dividends which i know would be fine if they are a UK taxpayer (watching out for S660), but what if they are not?
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