New Company Wife as a Shareholder

Wifes Shares, gift or subscriber shares

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Any comments would be appreciated.

New consultancy company being formed

Husband main fee generator and will be a Director. His wife dealing with accounts & admin.

Share capital to be split 20/80. In light or ARTIC case etc......

  1. Should all of the subscriber shares be given to the husband and then him GIFT the 20% to his wife. Is there any reason why she would not just buy subscriber shares at formation?
  2. Would there be any benefit in making the wife the Company Secretary/Director in order to support her day to day involvement and justification of any dividends.

I understand that there is no real correlation between someones shareholding and the actual daily management of a business, but would this add weight if queried by HMRC and support the potential amounts being paid to the wife?

 thank you

 

Replies (2)

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By Duggimon
06th Sep 2016 11:35

If the wife owns 80% of the shares and the shares are all one class then she's entitled to 80% of the dividends, it doesn't matter if she spends all day in a bingo hall while her husband does all the work or if she spends all day scrubbing the office while her husband does 20 minutes of consultancy and spends the rest of the day in the pub.

HMRC will not challenge this because it would be ludicrous to do so.

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By MBK
06th Sep 2016 12:40

And it doesn't make the blindest bit of difference how the shares get to each of the two parties.

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