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Children as Shareholders in my Company

  • 15-08-2013 3:51pm
    #1
    bluesteel
    Registered Users, Registered Users 2 Posts: 228 ✭✭


    I have a business and I'm considering moving my trade to a new limited company and having my children as shareholders- say 49%. As it would be a new business there CGT on the shares gifted would be minimal.

    Can I distribute income to my children as dividends in a tax efficient way?

    i.e I pay them say €15000 each per annum - after corporation tax and paying myself a salary. They then pay normal income tax - at a hopefully low level. I want to build up an educational fund etc for them and don't intend to spend the money myself.

    Am I missing something?

    thanks


Comments

  • #2
    Fitz123
    Registered Users, Registered Users 2 Posts: 166 ✭✭Fitz123


    Best off getting professional advice on this, thread will probably be locked here.

    Issues for you around disposing of current trade to new company, capital acquisitions tax for your children as the new business will have a value, plus no doubt a heck of a lot more than that.

    Spend the money getting proper advice, it will save you grief down the road.


  • #3
    bluesteel
    Registered Users, Registered Users 2 Posts: 228 ✭✭bluesteel


    Fitz123 wrote: »
    Best off getting professional advice on this, thread will probably be locked here.

    Issues for you around disposing of current trade to new company, capital acquisitions tax for your children as the new business will have a value, plus no doubt a heck of a lot more than that.

    Spend the money getting proper advice, it will save you grief down the road.

    thanks - I'd get proper advice before I'd pull the trigger. But I would like to have other opinions before shelling out.

    The company would be starting from scratch so I don't really see the value - I'd be transferring my efforts and skill only - there's no goodwill/creditors/assets.


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