This is my first post so "hello" to everyone in advanced.
I am ACCA but I work as an internal auditor so my knowledge of "practice accounting" is limited.
I have a friend who wants to establish a limited company that will provide IT services. It will be just him working as a contractor.
Given I am the only accountant he knows, he asked me if he could put 100% of the company shares under the name of his wife, given she does not work and he is fully employed there would be tax savings as a couple.
Before I referred him to a professional practice accountant I tried to solve the quetion for him.
Although I warned him of the disadvantages of this share structure in the case they divorce in the future, I could not find any information about the allowed or disallowed share structures in a limited company. I have seen on internet some examples of 100% controlling shareholders transferring 50% shares of their limited company to a partner, but I have not found any case where they actually transfer 100% of the shares.
Is there any rules to follow on the share structure of a 1 employee company? And also where could I find this information (ei Companies Act, HMRC guidance, etc)
Thank you very much.