New queries, issue 4661

Amicable split?

Two businesses one bank account.

My client has operated a range of activities through a limited company owned 60:40 with his wife whose involvement is minor although she is paid a modest director’s fee and dividends.

An activity that generates about 25% of the turnover has recently become subject to regulations about owners and managers and the client is considering separating the business into two companies – one that he will own 100% and the other that will probably be split 50:50 with his wife. It will then be easier to comply with the regulations because his wife will be completely excluded from the regulated business.

I can see several potential pitfalls with this but one particular suggestion by the client concerns me: he does not want to open a new and separate bank account for the new company.

Is...