.png)
.png)
11 August 2015
Justifying the division of profits between a divorced husband and wife.
We act on behalf of a husband and wife. The husband is self-employed and his wife undertakes the bookkeeping and administrative work for the business. Over the years the business prospered and some years ago the wife joined the business as a partner with her husband. He carries out the substantive duties of the business and she continues to carry out the administrative work which has grown in proportion. They share the profits equally which results in a tax saving.
The couple are now divorcing; however they contemplate continuing to carry on the business as equal partners.
Our question is whether there is a risk that the HMRC will challenge the proposed profit sharing arrangement into the future?
We look forward to advice.
Query 18 630...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
