I have a Limited Company where husband and wife hold one share each.The company has ceased to trade at present and the husband has taken up employment in the higher tax bracket 40%.There is approximately £80K in the bank and my thoughts are to transfer the husbands ordinary share to his wife and thereafter strip out the funds over a period of years at a level which keeps the wife outwith higher rates of tax.Any comments?
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Liquidation
Have you thought about the liquidation route. Get all the funds out at much lower rate of tax in one hit.
Lower rate of tax
Have you thought about the liquidation route. Get all the funds out at much lower rate of tax in one hit.
How can the rate be lower than 0%? The whole point of the OP's plan is that there will be no tax at all.
"One Hit"
The dividend model does give you the effective rate of nil, but liquidation would give you the funds in one hit rather than the drip drip approach.
The poster seems to already have the idea so just offering food for thought in a discussion forum.