Martin Mich
Joined: 12/22/2021
-
Childcare expenses paid by UK company on behalf of sole owner
Dear Sir, Dear Madam, Can a UK company be used to payment for nursery costs on behalf of it's sole owner? Under what circumstances could this be a legitimate business expense? I'm concerned that this lowers the company profit and thus the company tax, avoid making a distribution or lowers pay to the owner thus lowering individual income tax. So I would not want anyone to do this if it is not allowed. My son's mother is looking to do this - I'd like to give her advice so that she does not make a big mistake. Thanks and kind regards,
Name removed admin -
RE: Gift tax for cash gift from overseas
My father who is a US tax resident wishes to gift cash to my infant son, who resides in the UK. The gift would likely be made each year to an account in the UK in my infant son's name. My son has no income or possessions. My infant son would gain control over the funds on either his 18th or 25th birthday depending on my father's choices. What reporting requirements does my infant son have on this gift to him? And what tax, if any, would be due.