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Pension problem

17 August 2006
Issue: 4071 / Categories: Forum & Feedback

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 Shareholder A has withdrawn similar amounts by way of dividend and salary under PAYE.

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