We have inherited a trust which owns 40% shares in a private family company. The settlor of the trust owns 50% and his son 10%. The trust is discretionary. It appears that each year the settlor has taken a dividend from the company although the trustees have not. In effect a dividend waiver (?). When do the forum consider it OK for the trustees to waive their right to a dividend - if ever? what are the tax consequences of a waiver?
Simpson Wreford & Co