Dividend Waivers in Scotland

Anyone know if these are a reserved activity in Scotland?

Didn't find your answer?

More of a legal question but thought someone here might know.

I know that in the rest of the UK a dividend waiver is drawn up as a deed, which is a reserved activity, and so accountants south of the border can't prepare these for clients.

I understand that there is no such thing as a deed in Scots law, so my question is can accountants north of the border prepare these?

I'm hoping the answer is no but wanting something concrete I can go back with on this to stop the constant queries about dividend waivers I get (which tend not to work anyway as a result of settlements lgislation). 

Replies (9)

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ALISK
By atleastisoundknowledgable...
04th Jul 2019 08:07

“accountants south of the border can't prepare these for clients.”

Are you sure? I’ve done plenty over the years, both for my practice and when I was employed in practice.

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Replying to atleastisoundknowledgable...:
By johngroganjga
04th Jul 2019 08:23

Then you shouldn’t have been.

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Replying to atleastisoundknowledgable...:
RLI
By lionofludesch
04th Jul 2019 09:34

atleastisoundknowledgable... wrote:

“accountants south of the border can't prepare these for clients.”

Are you sure? I’ve done plenty over the years, both for my practice and when I was employed in practice.

Ooops!

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Psycho
By Wilson Philips
04th Jul 2019 08:55

The legislation in Scotland suggests that it is also a reserved activity here. Solicitors have also “confirmed” this - although they would, wouldn’t they!

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Replying to Wilson Philips:
Lone Wolf
By Lone_Wolf
04th Jul 2019 09:15

You couldn't point me towards the legislation could you?

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Replying to Lone_Wolf:
By slipknot08
04th Jul 2019 10:15

S.12 Legal Services Act 2007 - in particular, we are not allowed to undertake what are known as ‘reserved instrument activities’, which include “preparing any [other] instrument relating to real or personal estate for the purposes of the law of England and Wales”. This means, in effect, deeds (dividend waivers must be executed as a Deed).

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avatar
By Tax Dragon
04th Jul 2019 09:07

Lone_Wolf wrote:

(which tend not to work anyway as a result of settlements lgislation). 

Got an example in mind?

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Replying to Tax Dragon:
Lone Wolf
By Lone_Wolf
04th Jul 2019 11:04

Usually involves husband and wife shareholders. For whatever reason they need one of them to have dividends that doesn't tie to the shareholdings.

As a dividend waiver is basically a right to income, no capital value is passing over, then the settlements legislation kicks in and we don't get to use the husband/wife transfer exemption.

I've suggested using alphabet shares but it seems to fall on deaf ears I'm afraid.

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Replying to Lone_Wolf:
avatar
By Tax Dragon
04th Jul 2019 12:34

I wasn't doubting you, Wolf. There's just something around this area that I can't seem to get straight in my mind.

But this probably isn't the time or the place.

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