This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Dividends and university fees: Is HMRC watching?

Shared from Tax Insider: Dividends and university fees: Is HMRC watching?
By Mark McLaughlin, November 2023

Mark McLaughlin points out that a tax avoidance arrangement involving dividend payments towards university fees is under attack from HMRC. 

In family and owner-managed companies, it is not uncommon for shares in the company to be spread among family members. This might be done for various reasons – both tax and non-tax related. 

For example, the company’s shareholders might include an adult child whose parents control the business, or a trust in which the child is the beneficiary. Dividends might be paid on those shares, which go towards the child’s university fees and expenses. 

There is nothing inherently wrong with dividends being paid and used in this way. However, HM Revenue and Customs (HMRC) has highlighted a marketed planning arrangement around dividends and school fees, which is considered to represent abusive tax avoidance.  

Don’t go

This is one of our 2493 Premium articles

To see this article in full and unlock access to our complete library of 2493 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee