Hi all,
I recently have taken on an a new company client
The share capital was split 500 'A' ordinary shares to Mr & 1 'B' ordinary share to Mrs.
I understand that the share capital was split in this way because Mr wanted protection in the event that he split up with his wife!
In previous years the dividends were split in the most tax efficient manner on Mr & Mrs respective tax returns.
The revenue are now saying that this would be an arrangement akin to a dividend waiver within section 620ITTOIA.
They are using patmore v HMRC 2010 as case law to back up their decision.
They go on to say that Mr is the settlor in view of his controlling share capital.
The Revenue have amended the previous years dividends and re allocated them as 500/501 to Mr & 1/501 to Mrs thus resulting in a significant extra tax charge on Mr!!
Before I respond to HMRC is anyone able to offer an opinion preferably in favour of my client over HMRC.
I fear my client might have a problem here?!!
thoughts much appreciated,
simpsonite
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch