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Non Resident Shareholder or Director?

Can you add your kids as a Shareholder or Director in your Personal Service Company

Didn't find your answer?

Hi, just wanted to check.  Can I add my non resident children as a Shareholder or Director  of my personal service company as a way of giving them a monthly allowance of say £100-£200 per month. 

They are non resident in the UK but visit during holidays (don't pass the residency test).  Will they need to self assessment returns?

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By lesley.barnes
04th Sep 2020 16:13

How old are your children?

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By Juliewinters
04th Sep 2020 16:26

They are 18 and over and currently attending university.

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By Juliewinters
04th Sep 2020 16:25

Sorry I should have mentioned they are over 18 years and currently at University.

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Hallerud at Easter
By DJKL
04th Sep 2020 16:34

Are you sure they are Non Resident, has someone worked through the SRT for you?

https://www.taxguideforstudents.org.uk/going-abroad/residence

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Replying to DJKL:
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By Juliewinters
04th Sep 2020 17:03

Hi thanks. They actually have permanent residence in France but only visit me for the summer holidays. They spend at least 3 months overall I would say per year.

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Hallerud at Easter
By DJKL
04th Sep 2020 17:19

And how will they be taxed in France on dividends seems the obvious starting question, how are gifts taxed in France etc?

There may also be a UK CGT issue for you gifting them the shares and possible IHT considerations

You may want "Web Comptable" if such a thing exists but given two jurisdictions I think I would want an accountant (e.g I have some interests in Sweden, I pay someone there to manage anything outwith my ken)

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By Anonymous.
04th Sep 2020 18:38

Quote:

as a way of giving them a monthly allowance of say £100-£200 per month. 

What work are they undertaking in return for the allowances?

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Replying to Anonymous.:
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By Juliewinters
07th Sep 2020 17:15

No specified work at the moment. Maybe being a shareholder might be the better option?

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Replying to Anonymous.:
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By Juliewinters
07th Sep 2020 17:15

No specified work at the moment. Maybe being a shareholder might be the better option?

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By Tax Dragon
04th Sep 2020 19:04

I would imagine the answer is yes, but it's slightly outside the scope of this forum. There are of course tax considerations, possibly extending to you, the company and the children and relating both to the UK and France.

We can talk about the tax in here, but what you really need is personalised advice. The best way to obtain that is by appointing a tax advisor and/or accountant. You may need advice in both countries.

It's not sensible to do it (and certainly not the director bit) without taking advice.

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RLI
By lionofludesch
04th Sep 2020 23:46

I dunno. It all seems quite a faff to save tiny amounts of tax.

Wages are out unless they actually do some work. Dividends - suppose so in theory but you'd need to make sure the dividends were in proportion to the holdings. Alphabet shares are a possibility but - again - a lot of fuss for the amounts at stake.

And I've no idea about French tax.

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Replying to lionofludesch:
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By Tax Dragon
05th Sep 2020 10:05

The upsides, as you say, are minor (and maybe undone anyway by the French tax). It was the potential downsides that I was thinking of.

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By paul.benny
05th Sep 2020 14:02

accountantccole of this forum is UK accountant working in France. She should be able to give you proper advice.

(I have no connection and am only aware of her through posts here).

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By Juliewinters
07th Sep 2020 17:18

Thanks all for the thoughts on this question. I need to probably think about it further and it is a small amount to pay a large bill for advice. Will rethink.

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By Juliewinters
07th Sep 2020 17:18

Thanks all for the thoughts on this question. I need to probably think about it further and it is a small amount to pay a large bill for advice. Will rethink.

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By Juliewinters
07th Sep 2020 17:18

Thanks all for the thoughts on this question. I need to probably think about it further and it is a small amount to pay a large bill for advice. Will rethink.

Thanks (0)
avatar
By Juliewinters
07th Sep 2020 17:18

Thanks all for the thoughts on this question. I need to probably think about it further and it is a small amount to pay a large bill for advice. Will rethink.

Thanks (0)
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