This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Dividend Waiver

170872
Posts:75
Joined:Wed Aug 06, 2008 3:41 pm
Dividend Waiver

Postby 170872 » Thu Nov 11, 2021 12:00 pm

In a two Shareholder company with 50/50 share holdings and they both are also directors of this close Ltd company - can one shareholder waive his dividend and allow the other shareholder
to take maximum dividend?
The shareholders are not related and the reserve left for dividend is 46K and one shareholder would like to take £45K

Will this dividend subject to HMRC challenge or is it acceptable?

Thanks

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Dividend Waiver

Postby pawncob » Fri Nov 12, 2021 4:44 pm

https://www.itcontracting.com/what-is-a-dividend-waiver/
With a pinch of salt take what I say, but don't exceed your RDA


Return to “Company Taxation”

cron