tartan

I've found the article. I was mistaken, it relates to inheritance tax rather than dividend tax. Here's is the essence or the article:- There is a little-known technique that allows you to pass on unlimited wealth to your loved ones free of inheritance tax. It doesn't require complex trusts or bonds, expensive advice or endless admin. In fact, all you need to set it up is a letter. The exemption is known as gifting out of surplus income. In other words, you can pass on as much money as you like so long as it comes from your income rather than existing assets. Unlike most other gifts, those made in this way are not affected by the seven-year rule, whereby gifts may be subject to inheritance tax if you die within seven years of making them. Gifts made from regular, surplus income money as you like so long as it comes from your income rather than existing assets are immediately tax free and won't incur a bill later on. To qualify for the exemption the gift must come from surplus income, not assets. The gift must follow a regular pattern e.g. monthly, yearly.

Thanks for your response. The 'Tax on dividends' link only explains the allowances and tax bands. I'm interested in the implications of regularly gifting the proceeds of share dividends. The article implied that the owner of the shares wasn't liable for tax on the dividend if the proceeds were regularly gifted, I'm searching for the article and will post if I find it. I believe it was in either Guardian or Telegraph Money section just over a tear ago,

I seem to recall reading an article some time back about regular gifting of income from dividends to children and not incurring tax on those dividends personally. E.g. Each month I received dividends from my portfolio and I gift the cash received from the dividend to my daughter. As I don't personally gain financially there is no tax to pay (note: the amount would exceed dividend tax allowance). The keep part in the article was that it was a regular payment. I'd appreciate feedback it this is accurate or if there is something I'm missing.