Shareholding allocation to father

Hi, I am thinking of establishing a company of which I will be a director and the shareholding will be split between myself and my father, who will take no or only a minor part in the operation of the company. He is 72 and a resident in Bulgaria, which has a dividend tax of 5% and thus lower than the UK. The intention is for his shares and mine to have identical voting rights other than as to dividends. None of the dividends paid out to him (if they ever are) will be repatriated back to me. From what I have read online, it appears that this would be permitted if the other shareholder was my spouse, following the Arctic Systems case, What needs to be complied with in order for the arrangement to be legitimate in the same way between father and son? Thank you!

Hi

We do not give tax planning advice, you may need to speak to financial/tax advisor.

Thank you