Changing share structure of a Ltd Company

[alloy36]

Hi,

I was contracting a few years ago via a limited company of which me and my mrs were equal shareholder but then took up a permie well paid job.

I have an opportunity for some part time contracting work which I can do under my company. My question is for tax efficiency is it legal for me to change the share ownership of my limited company to my mrs so all dividends can be withdrawn under her name and utilise her tax allowance?

She is looking after our kids so not working at the moment. If I was to withdraw the dividends equally in accordance with out current shareholding, I would get stung with the dividend tax as I am a higher rate tax payer. The take-home then may not justify the extra work into doing this sideline consultancy work.

Any help appreciated.

Thanks

[alloy36]

Thanks everyone.

hmmm, the legend known as Eric MC does not sound keen - more research needed me thinks

The sad thing is this could make the difference between me taking up this opportunity or not. At time it seems like trying to work hard is not really worth it. I'm sure with all the taxation and loss of child benefit etc, there must be some cases where it is better to work less!! How can that be right