Here goes...
I am employed in the UK, firmly in the 40% bracket. I also run a partnership in the publishing area, whose main source of income is royalties generated in Singapore, with annual witholding tax of c £5,500 equiv. The partnership is my wife and I - my wife is retired with a total income of around the UK state pension (£8,000), so not paying tax. The partnership agreement allows us to split the profits any way we deem fit. 2016-17 profits before split are £13,000. My advisor wants all the profits allocated to me so all the foreign tax can be offset against my UK tax bill (fair enough!). However, my question is whether it is possible for the partnership to agree that all the tax relief comes to me, but all (or most) of the partnership profits go to my wife, to take advantage of zero or 20% rates that I don't get.
Thanks for reading.
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