A client has been speaking to his friend on the weekend (rolls eyes)
The client has 50 shares in a profitable trading company his mother has the other 50.
The friend has suggested that he and his mother gift say 5 shares each to his daughter who is 9 years old. He suggested then decaring a dividend on which his daughters share will be covered by her annual allowance. Hence he gets the money out of the co tax free to pay the fees.
I am aware that if he gifts shares this wont work - anti avoidance - the dividend income will count as his.
However if just granny moves over some shares to the daughter is this ok? or is it a no no because he is involved in the company?
Thanks for any replies in advance