Dividend Waiver & CSA
Company wishes to pay Dividend to 5 family members all equal shareholders.
Dividend will put 2 shareholders into higher rate taxes & remaining 3 will remain basic rate taxpayers.
The 2 shareholders who will go into higher rate taxes have discussed possibility of waiving right to Dividend to avoid higher rates. This however is open to challenge under settlement legislation as the shareholders are all connected & the non waiving shareholders will pay less tax on any dividend than the waiving shareholders.
A 3rd shareholder who will remain basic rate taxpayer irrespective of receipt of dividend has also put forward the notion that he does not want the dividend as this will,affect a CSA assessmsnt he has to pay for maintenance.
I am currently looking into CSA assessments but from what I can see to date any dividend income which he receives will be brought into his maintenance calculation as he & connected person have control over the payment of dividends.
Can anyone point me in direction of how CSA treat Dividend payments in assessments of maintenance payments?
Also waiving dividend to get round maintenance assessment is morally questionable however has anyone come accross use of a waiver in this circumstance.
- Director Expenses and P11D but no PAYE scheme in place 100 4
- Client Entertainment to get new business or referral as opposed to say thanks 118 3
- CIS Subcontractor Catch Twenty Two Position after 14 years 310 6
- CGT history of shares 161 3
- CGT on sale of let property 84 2
- ACCA, ACPA, IFA, ICPA 139 2
- how do i get UTR 103 3
- Input VAT suffered in EU 70 2
- Is there any good reading I can obtain to do self assesment on partnerships? 223 3
- A round of applause please for winner of BITCH OF THE 342 11
- How do you get HMRC to refund overpaid PAYE and NIC 105 1
- Your comments please 290 6
- VAT on Royal Mail Parcel Services 173 9
- CT600 deadline & shortened year end 104 2
- EIS 191 4
- Income Splitting - form 17 and DoT 104 1
- Charity requirements to report ALL I&E in accounts 107 2
- Transfer of Software to sister company 104 1
- So who has completed a 2015 tax return then? 714 14
- Should a non trustee sign Scottish charity accounts? 198 1
- Moving away from CCH software 964
- QROP pension input amounts 449
- write off loan or loan to equity swap or both 393
- HMRC BENCHMARK EXPENSES 375
- fraud 298
- EIS relief on transferring shares to spouse 273
- Sole trade business in UK, but the owner works from EU 242
- Construction CIS LLP Company 224
- EPS and CIS deductions 219
- Out of time or not? 202