Shares from Grandparents

Shares from Grandparents

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New limited company business run by parents has some shares issued to their parents before trading commences.

If this company becomes profitable after a year or so can the grandparents gift some or all of these shares to the infant grandchildren so they receive dividends using their
PA and basic rate bands?

If this is OK would it be advisable to make the gift to grandchildren before or after a pattern of dividends has been established?

Thanks.

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By halblackburn
17th Feb 2012 11:45

Shares held by minors

This cannot be recomended.  Minors do not have legal capacity.  The shares could be held by one or more adult trustees.

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