I have a client who have two companies. Company A where his brother and wife are directors.
My client has 70% shares in the company and 30% is owned by his wife.
Company B where there are 5 shareholders and 5 directors. My client is one of the shareholder and director.
Company B is going to get a big contract and my client wants to transfer his share of the income from Company B to Company A in the form of management fees or consultancy.
Will this be legal, allowed and acceptable to the Inland Revenue?
Many Thanks