Planning the level of remuneration from employment and/or income from other sources can be an easy way of ensuring maximum efficiency from a taxation perspective.
We will review your current position (along with that of your spouse if applicable) to design a bespoke plan.
Transferring shares from husband to wife (or vice versa) and/or to other non dependents can be a simple way of ensuring that full use of both spouses tax free personal allowances (currently £12,570), dividend allowances (£1,000 from April 2023; reducing to £500 from April 2024) and basic rate tax bands (currently £37,700) are fully utilised.
The potential CGT pitfalls that may arise from transferring shares to other individuals can be avoided by making certain claims and elections to HMRC. Which of course, we’ve got covered!
Such a transfer of shares could also be useful in order to utilise a spouse’s annual exemption for CGT purposes (£6,000 from 6 April 2023; reducing to £3,000 from April 2024) or even to access their lifetime limit for Business Asset Disposal Relief.
