Waiving dividends

Waiving dividends

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I have a client who, due to other income, does not want to take all his dividends from his company. His partner is a shareholder too, and she is only a basic rate tax payer.

Is it permissible for him to draw dividends on only say 10 of his 85 shares whilst she takes her full dividend on the 15 shares. There will be ample reserves to pay all the dividend on all the shares if needs be in the company, but for personal tax reasons he doesn't want all his dividend.

Is it case of waive it or all or have it all ?

Thanks in advance.

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Jennifer Adams
By Jennifer Adams
12th Dec 2014 14:18

Waive it all or part...

Here is an article which sets out in checklist form what should be considered when deciding to waiver or not...

A waiver may cover a single dividend, a series of dividends or dividends declared during a specified period of time.

www.accountingweb.co.uk/topic/tax/dividend-waivers-get-details-right/481882

You could recategorise the shares and then vote for dividends on one type of share only

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Portia profile image
By Portia Nina Levin
12th Dec 2014 14:02

Yes

You can waive the dividend on just some of your shares.

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