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Search results: 25 article(s) found in topic: Husband and wife companies - keyword: Income shifting

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INCOME SHIFTING

Tribunal shifts tax bill to director’s partner

In a tricky dispute between HMRC and a director, the First-tier Tribunal ruled that income due to her from her company was actually taxable on her partner. If your partner is a director of your company, could the ruling have implications for you? More...

TAX PLANNING

Shifting your tax bill the easy way

Special rules apply to income received from assets which are jointly owned by married couples. They allow you to vary the share of income on which you each pay tax. How can you use these rules to create tax savings? More...

LOANS

A new twist to income shifting

You’ve been told that you can reduce your higher rate tax bill by transferring some of the shares in your company to your partner. The transaction can be a simple gift, but is there a more tax efficient alternative? More...

LOANS

Can borrowing from your partner save tax?

Your company needs extra working capital. Your other half has suggested that as her savings earn interest at a paltry rate she can lend the money for a reasonable rate of interest. How can you structure the deal for maximum tax efficiency? More...

PROFIT EXTRACTION

HMRC wins profit shifting case

A tribunal recently ruled that the profit shifting scheme used by two married couples who were shareholders in the same company was caught by anti-avoidance rules. What went wrong and how can you avoid the same trap? More...

PROFIT EXTRACTION

Income shifting - transferring shares to your spouse

Your business started a year ago and is now doing well so you want to transfer shares in the company to your spouse. You’ve heard this must be done a certain way or it won’t be effective for tax. What are the traps to look out for? More...

PROFIT EXTRACTION

Is sharing income with your spouse tax abuse?

The tax general anti-abuse rule (GAAR) became law this summer, and there have been rumblings that HMRC will use this to attack income shifting between spouses. Should you be concerned about this? More...

PROFIT EXTRACTION

Why it’s worth paying directors’ fees

The Taxman’s instruction manuals say he should challenge companies that pay salary to a director’s family just as a way of avoiding tax. Is there a legitimate way of paying them which can achieve the same result? More...

PROFIT EXTRACTION

Income shifting - the big picture

A few years ago the Taxman got hammered by the court in the Arctic Systems income shifting case; recently he tried his luck again. He lost but it was a close call. What tax planning tips can be gained from this latest case? More...

INCOME SPLITTING

Sharing the family income

The current economic downturn has resulted in falling income for your family and now your partner has been made redundant. Could you transfer some of your income to them and save some tax in the process? More...
Last updated: 16.10.2018

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