Kent Solicitors

A husband set up a company to provide his consultancy services. He made sure that his wife had 50% of the shares even though she played no part in the running off the company. The companys income was distributed by way of dividend on the shares, rather than salary to the husband

In a bitterly fought battle going all the way to the House of Lords, the taxpayer emerged victorious. This was not a tax evasion scheme or settlement, but was a genuine gift of the shares by the husband

No doubt, HM Revenue and Customs will now seek to change the law

Labels: Family company dividend tax evasion settlement gift