I have just taken on a client who had prevously used one of the 'Big four' as their advisors until now. There shareholding set up is that the shareholders include the children of the founding shareholders. They range from 3yrs old to 16.
I have always been of the understanding that this was not possible or although it may be possible there are no tax savings becuase the dividends would be taxed on the parents
The children all do tax returns and these are signed by the parents and their income is quite substanstial
Am I missing something? This set up was put in place by my predecesors who as per the above are not no small practice!