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Tax Chat

Clear documentation pays dividends

Clear documentation pays dividends

Allocating dividend income between spouses can offer significant tax savings. 

However careful planning is needed to facilitate this.

 In a recent case, failure to adequately document transfers of shares between spouses left the taxpayers unable to demonstrate that a transfer had actually happened.

As a result it was held that all the shares belonged to the original spouse and therefore all of the resulting dividends paid were to be taxed on them.

 The moral of our story is clear, documentation is crucial to any tax planning and it pays to make sure it is correct.

For assistance please call Lesely Sutton on 01484 538351.

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