Simmers & Co
Topical Points Answer
I have my own business and pay tax at 40%. Can I make my wife a partner and give her a share of the profits?
There is no reason why your wife cannot become a partner in the business, provided there is a genuine partnership. You should, therefore, ensure that you have documentation which will satisfy HM Revenue and Customs that this is the case as they may dispute any arrangements that are not commercial.
Even if you choose to make your wife a partner and give her a profit share, HM Revenue and Customs may treat the income as yours and tax it accordingly, thus saving you no tax.
This situation needs careful thought prior to any action and we will be pleased to assist you in achieving your desired outcome.