Alan Pink points out that forward planning can be beneficial when setting up a new company.
It’s best to get the shareholdings in a newly-formed family company right on formation. This article considers some of the tax issues involved.
There is a lot to think about, of course, for clients and their advisers when a new business is starting. Amongst these, tax can take rather a back seat in everyone’s thinking; but it can be a good idea to consider the future, on the assumption that things are going to go well. What I am proposing to concentrate on here is the particular aspect of how the shares in the family company are structured.
Income tax planning
One comparatively straightforward way of reducing the impact of tax in a family company situation is to
