In certain circumstances shareholders may wish to pay dividends other than in proportion to their shareholdings. This aim is typically achieved by one or more shareholders not taking a dividend when it is declared. To effect this, the relevant shareholders must waive their right to dividends from the company prior to the dividend being declared. Care must be taken when waiving dividends. HMRC may attack this where there is a loss of tax as a result.

From me to you

This article, written by Peter Rayney for Taxation magazine, the market-leading weekly magazine providing news and features on UK tax law, practice and administration, explains the tax advantages and possible pitfalls when dividends are paid to spouses or civil partners.

Download the full guidance note - dividend waivers

Download the full article - from me to you taxation