13/10/2026
π¨ PAYING DIVIDENDS TO YOUR SPOUSE? READ THIS FIRST! π·
If you run a limited company, transferring shares to your spouse could help make your familyβs tax position more efficient. But itβs not as simple as just putting them on the payroll or paying them dividends.
β οΈ Here are 4 things business owners need to know:
π₯ Shares must be genuine. The arrangement needs to give your spouse real shareholder rights, not simply a right to receive income.
π¦ Dividends must be handled correctly. Payments should go to the shareholderβs own bank account and reflect the shares they hold.
π Dividends aren't always the best option. They can only be paid from available profits, and the combined Corporation Tax and personal tax position matters.
π Getting the structure wrong can be costly. Share transfers, dividend waivers and different share classes can all have tax implications.
Thinking about paying dividends to your spouse? Get professional advice before making changes.
π Save this post as a reminder to check your arrangements.