Changing shareholding within a company
A clients business is owned 75% by the father, 5% by the mother and 20% by their son.
They all work in the business in a full time capacity. At the moment the mother takes a decent salary on which she has to pay tax. They would like to realign the company share holding so they each have 33.3% in order to use dividends as an effective way of getting tax free payments out. They have asked me to rectify this.
However the business is profitable (£60k PBIT on T/O of £330K) and so obviously the shares have value.
How would one go about this with out creating capital gains and/or other tax liabilities?
- Stumped - IHT 41 2
- Leaving the VAT FRS Scheme or trying to stay as long as possible? 381 6
- No PAYE Registration but need auto enrolment 446 11
- Tips on meals 89 1
- HMRC now overriding SA bank repayment details on tax returns 1,263 33
- Credit management tools 84 1
- Rental losses on jointly owned property 61 2
- property capital gains 68 1
- Write an article on latest tax changes for landlords. 758 20
- Incorporate to utilise dividend allowance next year? 341 7
- CGT and primary residence 132 1
- Marriage Allowance 220 3
- Private doctors - Ltd company vs partnership 1,116 12
- S455 and February year ends 281 7
- HMRC having technical difficulties 859 18
- Closing down loss-making company 431 5
- S.455 Tax again 278 3
- New Build 332 2
- Taxation of sinking fund contributions 373 4
- Mortgage Reference 786 10