I have just come off of a call with a potential new client who has shares in his company, as does his 14 year old son and his brother and father. (all 4 are different share classes)
He draws dividends up to the £50k threshold when combined with salary, his 14 year old son has £12k of dividends and his brother and father receive ad hoc dividends that seem to vary (i havent seen the full history as this was an introductory call).
I queried the dividends paid to the son (and looking at Companies House he has had these shares since 2015 when he was 9) as the £100 rule applied in my head with no exceptions and he told me that "his current accountant said it was OK to use the sons allowances as long as the cash is kept in an account in the sons name and not accessed by him the father at all).
I must admit this was new to me but i have read online a few comments on various websites that say that if it is demonstrated the child paid for the shares using their own funds that did not come from the father (eg a grandparent) then the income would be taxed on the child not the parent but that is caveated with the fact that it may be challenged by HMRC (settlements legislation)
Am i missing something here ? to my mind this was not an option (ie the £100 rule always applies) but to avoid me looking like I have missed something i thought i would check with fellow readers.