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Our client property development company has been trading successfully for ten years. There are two shareholders; A holds 500 A ordinary shares and B holds 500 B ordinary shares.
Throughout the company's history, B has drawn fees from the company for the professional services provided by the consultancy partnership of himself and his wife. Shareholder A has withdrawn similar amounts by way of dividend and salary under PAYE.
Our client property development company has been trading successfully for ten years. There are two shareholders; A holds 500 A ordinary shares and B holds 500 B ordinary shares.
Throughout the company's history B has drawn fees from the company for the professional services provided by the consultancy partnership of himself and his wife. Shareholder A has withdrawn similar amounts by way of dividend and salary under PAYE.
Shareholder A has drawn a nominal salary of £4 800 per annum with the exception of the year ended 5 April 2004 when he was paid a salary of £97 500. The shareholders anticipate that the company will cease to trade on the sale of its final property in September 2006.
The company's year end is 30 November. It is anticipated that the profits to November 2006 will be £1 000 000.
The shareholders are considering whether the...
