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TOPIC: IB

IB 6 years 10 months ago #14797

This is on behalf of someone covered by our membership.
We have a very small family firm and want to award a share in the company to a family member who is disabled so that they can receive dividends and share in our success. They would not be expected to carry out any work at all for the company, only to own the share and receive the dividend.

It's unlikely their dividend will amount to more than a few hundred pounds a year, but in the event that we had a good year it might be several thousand pounds.

However, this family member receives Incapacity Benefit and Higher Rate DLA. Would owning a share and receiving a dividend count as work and affect their benefit? Or would it count as an investment, especially if we asked them to 'buy' their share for a nominal amount?

Most importantly, does anyone know which Act of Parliament would cover this situation, and give us a definitive position in law?
The administrator has disabled public write access.

Re:IB 6 years 10 months ago #14802

  • Jim Allison
  • OFFLINE
  • retired Principal Welfare Rights Officer
Hello,

As moderators, we cannot offer advice to individuals about a specific benefits problem under any circumstances for legal reasons. To give accurate and reliable advice about a specific benefits problem, we'd need to know a great deal about your income, savings, health, household arrangements and more. To give advice without all this information would seriously risk misinforming you.

Also, shares and dividends are not an area that we cover, as none of us are financial advisers or solicitors.

You need to seek 'face to face' advice from someone who is legally qualified to answer your query.

I can only recommend that you contact your company's solicitor, or Community Legal Advice who can put you in touch with a local solicitor who is qualified to answer your query.

Good luck.

Jim
PLEASE READ THE SPOTLIGHTS AREA OF THE FORUM REGULARLY, OTHERWISE YOU MAY MISS OUT ON IMPORTANT INFORMATION. Nothing on this board constitutes legal advice - always consult a professional about specific problems
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Moderators: bro58, Gordon, Mrs Hurtyback, shelam
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