Richard Curtis considers potential problems when dividends are paid to spouses and civil partners.
Husbands and wives or those in civil partnerships (included in the term ‘spouses’ in the rest of this article) will often seek to minimise the family’s tax liability by the efficient use of personal allowances and tax bands.
One strategy for business owners who operate through a limited company might be paying dividends to their spouse. While this may seem straightforward, potential tax traps can lead to unexpected liabilities and scrutiny from HM Revenue and Customs (HMRC).
