There’s been a lot of controversy recently about shares being gifted to children to fund school fees. I’ve always been nervous about such arrangement but now I have started to worry about shares for university fees. My opinion has always been that it was acceptable in a family-owned company for dividend-only shares to be created and transferred to adult children so that they can take advantage of the dividend allowance.
My question is whether this is still acceptable or whether I will find myself under attack or investigation for giving unacceptable tax advice.
Query 20 288 – Educator.
This is acceptable as s 629 does not apply to adult children.
Educator is specifically asking about the legitimacy of parents providing funds for university by way of dividends from a family company and is worried by recent controversy around this subject. It is worth recapping as to what...
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