»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp lists below are by no means definitive of situations to which the settlements legislation can be applied. For further guidance internal users should contact Trusts Technical. (see TSEM11100)

• Disproportionately large returns on capital investments.
• Differing classes of shares enabling dividends to be paid only to shareholders paying lower rates of tax.
• Dividends being waived so that higher dividends can be paid to shareholders paying lower rates of tax.
• Income being transferred from the person making most of the profits of a business to a friend or family member who pays tax at a lower rate.

»Ê¹ÚÌåÓýappre are a wide range of arrangements that can potentially be caught by the settlements legislation which do not involve a trust. Each case will depend on the facts but some of the most common situations which we see are:

• Shares subscribed at par that carry only restricted rights.
• Shares given away that carry only restricted rights.
• A limited share in a partnership gifted or transferred below value.
• Dividend waivers.
• Situations where dividends are paid only on certain classes of shares.
• Dividends paid to the minor children or stepchildren of the settlor.