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Where Taxpayers and Advisers Meet

Dividend Waiver

170872
Posts:74
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:4877
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


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