If in a private ltd co, minor children (under 18) are given shares, they receive dividend income and I understand this income is assessed as the parent(s) income, but which parent(s)?
If mother and father are married, are not separated, have 2 children and the 2 children own the same amount of dividends, which parent(s) is the income assessed on?
is it is simple as it is just split 50/50 between parents?
if not, how is it split and does it depend on any criteria? For example if the shareholdings are held as a bare trust by one of the parents, perhaps they are assessed on the parents?
Does it make a difference that my client does not want their children to appear at companies house so is going to hold them as nominee shareholders under a bare trust?
thank you for clearing up the question about which parent(s) the assessment of earnings will fall upon.