Does anyone know of any tax implications of making retired foreign parents, who live abroad, shareholders of a ltd co and pay them dividend. I consider this to be a good way to reduce tax liability (esp if they are sent upkeep money on a regular basis), if tax on dividend fall into 32.5% bracket.
Does anyone know of any reason why this cannot be done and if there are any factors to consider.
Many thanks
Sandra
Replies (2)
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I take it HMRC will be fine with the arrangement...
Thank you for your answer, Shuan.
So, provided there are no additional tax to pay, there is no reason why this should not be done, then? ... from HMRC's point, I mean.
it depends on the country............
because some countries like France levy a social charge on dividends (around 13%) so you would need to find out the treatment for investment income in each country.