We have long warned our clients about the dangers of using dividend waivers to pay more to another shareholder.
In a recent tax case, husbands executed dividend waivers in favour of their wives to utilise their personal allowance & basic rate tax band. The tribunal found that the dividend was still taxable on the husband. The exemption for gifts between spouses will not apply if this is merely a right to income.
So avoid dividend waivers wherever possible. Speak to your tax advisor as you can allocate income between shareholders in a tax efficient manner without the need for dividend waivers.