Company has two shareholders (H&W). They are the only directors. H has other job and pays Higher Rate tax; W has no other income outside company. They want W to get any dividends until she reaches the BR threshold, and to share any excess profits equally between them. Would the following descriptions of rights attaching to shares achieve the desired objective with no obviously undesired results?
“A” shares carry the right to dividends, in any UK fiscal year, up the Basic Rate personal tax threshold for that fiscal year, less the applicable personal allowance for that fiscal year. “A” shares carry no right to any assets on winding up.
Dividends on ”B” shares can only be paid once the maximum dividend on the “A” shares has been declared in any UK fiscal year. “B” shares carry the right to a share of assets on winding up.
I would be very grateful if answers consisting of little more than the word "No" could be avoided. Thanks in advance.