Gift of shares in a close company to grandchildren

Gift of shares in a close company to grandchildren

Didn't find your answer?

My client has formed a limited company and is considering the possibility if giving some shares to his grandchildren, while they are under 18 would the income from dividends be taxable on the parents or on my client?

Replies (1)

Please login or register to join the discussion.

Euan's picture
By Euan MacLennan
01st Mar 2012 12:13

Neither

They would be taxable on the grandchildren.  They are entitled to the same tax-free personal allowance as anyone else, but it would not be of any benefit to them as the tax credit on dividends is not refundable.

Thanks (0)